The Nigerian government has launched a new oil licensing round with the aim of boosting its energy sector and attracting international capital. With a strategy focused on transparency and accessibility, the government has decided to reduce entry costs for companies interested in exploring and exploiting oil blocks in its territory.
The boost through bonuses and oil licenses
The Nigerian Upstream Petroleum RegulatoryCommission (NUPRC) announced that signing bonuses for the 2025 licensing round will range from $3 million to $7 million. This represents a marked decrease from the $10 million required in 2024 and a substantial drop from the levels of a decade ago, when they could exceed $200 million. In addition, the entire licensing process will be conducted digitally through an online portal, allowing interested parties to access technical information and submit their bids remotely.
This new round includes a total of 50 blocks: 15 onshore, 19 in shallow waters, 15 in frontier basins and one in deep waters. The strategy seeks to expand production capacity, and encourage the development of gas and deepwater gas and deepwater projectsto diversify the country’s energy sources.
NUPRC Director Oritsemeyiwa Eyesan emphasized that this is the first round under its supervision, and assured investors that it will operate under a transparent and predictable regulatory framework. Oversight will be provided by NEITI, the Nigerian arm of the Extractive Industries Transparency Initiative, along with other government agencies, ensuring that the process meets international standards.
The Nigerian government aims to raise oil production to 2.7 million barrels per day by 2027 from the current 1.5 million barrels per day. Some companies, such as Chevron and TotalEnergies have expressed interest in participating in the auction, raising expectations for an active and competitive round.
This new framework values the technical and financial capacity of bidders, prioritizing solid work plans and speed in start-up. Incentives have also been introduced for projects focused on gas, as well as difficult-to-access exploration, such as deepwater.
Source: Reuters