By Obinna Uballa
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has released detailed guidelines for the 2025 Petroleum Licensing Round, setting a minimum turnover requirement of $100 million for companies seeking deep offshore assets and $40 million for those bidding for onshore and shallow-water blocks.
In a Frequently Asked Questions (FAQ) document published on Monday, the commission said the new framework aims to expand investment opportunities, grow reserves, boost production and align Nigeria’s licensing process with global best practices. As part of efforts to reduce entry barriers, signature bonuses for the round have been fixed between $3 million and $7 million.
A signature bonus is the one-off, upfront payment made by an oil or gas firm upon winning rights to explore or produce from a block.
According to the Gbenga Komolafe-led commission, the licensing round is designed to attract Foreign Direct Investment, enhance Nigerian content, expand gas utilisation and create value for both government and investors. Successful bidders for the 50 Petroleum Prospecting Licences (PPLs) will also be allowed to dispose of crude oil or natural gas recovered during drilling and testing phases.
The prospecting licences will run for an initial three-year period, with a possible extension of three years for onshore and shallow-water assets, and five years for deepwater and frontier basins. The entire bid process is expected to run for eight months—from November 17, 2025, to July 17, 2026.
NUPRC stressed that the exercise is open to both Nigerian and foreign companies. While foreign firms do not need to register locally to participate in the bid, they must be incorporated under the Companies and Allied Matters Act (CAMA) before any award can be finalised.
Applicants may be disqualified if they have outstanding debts to government, have failed to operate previous licences in line with regulations, or are insolvent, among other criteria.
The commission listed two key pre-qualification criteria: technical competence and financial capacity. Technical competence will be assessed based on experience in geology and geophysics, drilling and well engineering, reservoir management, production technology and project development.
“All bidders shall be required to submit a bid within the range of $3 million to $7 million as approved by the Minister of Petroleum,” the document said, warning that any bid below the threshold will be rejected.
On financial requirements, the commission said entities must show average annual turnovers of at least $100 million for deep offshore assets and $40 million for onshore and shallow-water blocks. It also capped the total number of assets for which a bidder may apply at two—whether individually or as part of a consortium.
Where a company holds equity or management roles in multiple consortiums, all entries will be treated as a single bidder’s applications.
NUPRC added that new companies, special-purpose vehicles and consortiums may also participate, provided their shareholders or members meet all pre-qualification requirements.
Commission denies withholding Frontier Exploration Fund
Meanwhile, NUPRC dismissed claims that it was refusing to release the Frontier Exploration Fund (FEF) to the Nigerian National Petroleum Company Limited (NNPC Ltd).
The commission’s Head of Media and Strategic Communication, Eniola Akinkuotu, said $185.1 million and N14.9 billion had already been approved for release, clarifying that the fund is held in a Central Bank of Nigeria (CBN)-managed account, not with NUPRC.
He explained that the commission’s role is limited to evaluating NNPC’s work programme and approving payments for certified activities.
“We approve funds based on certified activities and awarded contracts. If no contract has been awarded, we cannot authorise a payment,” the statement said.
NUPRC further disclosed that it engaged PwC to verify NNPC’s claims in the interest of transparency. It noted that a final tranche of $140 million was approved on November 27, 2025, in addition to earlier releases of N14.9 billion and $45 million.
“It is mischievous for anyone to rely on faceless allegations. The fund is strictly for NNPC’s use, and no operator should make unfounded claims,” the commission stated.
It also referenced an earlier rebuttal by the Minister of State for Petroleum, Senator Heineken Lokpobiri, denying reports of an investigation into NUPRC’s handling of the fund, describing renewed allegations as “pure mischief.”
