The Federal Government has clarified that companies offering the highest financial bids will not automatically secure oil blocks in the ongoing 2025 Licensing Round, emphasizing that technical expertise and operational capacity are critical factors in selecting successful bidders.
NUPRC CEO Outlines Evaluation Criteria
Speaking at the 2025 Commercial Bid Conference in Abuja, the Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Oritsemeyiwa Eyesan, stated that the licensing process is designed to award oil and gas assets to firms capable of developing them efficiently and sustainably. She explained that the commission's evaluation goes beyond financial offers, assessing bidders on technical competence, industry experience, operational strength, credibility of proposed work plans, resource commitment, and ability to deliver projects within agreed timelines.
"The evaluation was rigorous. It was objective. It was simple. And it was to place assets in the hands of bidders capable of delivering the best overall long-term value. It wasn’t, or it isn’t going to be just about your ability to be the highest bidder," Eyesan said.
Transparency in Commercial Bidding
Eyesan assured participants that the commercial bidding process remains transparent, noting that no bidder had prior knowledge of competing financial offers before the official opening. "Today, the commercial components of the qualified bids will be opened. And as was said earlier, forget whatever you’ve been told, forget whatever you’ve heard, nobody has seen anybody’s commercial bids. And we will demonstrate that today," she added.
She further emphasized that the approach ensures assets are operated by credible, competent operators, not merely by those who can bid the highest.
Background of the 2025 Licensing Round
The commercial bid opening marks the final stage of the licensing exercise before successful bidders are announced. The 2025 Licensing Round was launched on November 11, 2025, under the Petroleum Industry Act (PIA) 2021, with 50 oil and gas blocks made available across seven sedimentary basins in Nigeria. The available assets include 16 onshore blocks in the Niger Delta, 18 shallow water blocks, one deep offshore block, three blocks in the Benin Basin, four in the Anambra Basin, four in the Chad Basin, and four in the Benue Trough.
The bid portal opened on December 1, 2025, while a pre-bid conference was held in Lagos on January 14, 2026, to guide prospective investors. Registration and prequalification submissions closed on February 27, with the qualification process completed on March 16.
Weighted Evaluation System
Under the licensing framework, successful bids are determined using a weighted evaluation system that considers signature bonus commitments, proposed work programmes, and performance security. This combines both technical and commercial scores rather than relying solely on financial bids. The approach aims to ensure that oil and gas assets are awarded to companies with the expertise, financial capacity, and operational capability to drive exploration and production in Nigeria's upstream petroleum sector.
