The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) is set to announce the successful bidders for 50 oil and gas blocks on Tuesday, July 21, 2026, during its Commercial Bid Conference. This announcement will conclude an eight-month licensing exercise that began with President Bola Tinubu's approval of the 2025 Licensing Round on December 1, 2025, under the Petroleum Industry Act (PIA) 2021.
$10 Billion Investment Target
The licensing round covers 15 onshore blocks, 19 shallow-water blocks, 15 frontier blocks, and one deep-offshore block. These blocks are spread across five major hydrocarbon basins: the Niger Delta, Chad Basin, Benue Trough, Anambra Basin, and Bida Basin. The NUPRC has projected that the round will draw approximately $10 billion in new capital, helping to unlock discovered but undeveloped fields and dormant assets while accelerating natural gas output.
The commission described this as the third licensing round conducted under the PIA framework, reflecting the federal government's broader push to strengthen energy security and stimulate upstream activity. The bid process proceeded through five stages: registration and pre-qualification, data acquisition, technical bid submission, evaluation, and the Commercial Bid Conference. Pre-qualified applicants were notified on March 16, 2026, while technical and commercial bid submissions closed on June 12.
Merit-Based Selection Process
The NUPRC stated that the selection process is merit-based, weighing both technical competence and commercial proposals. The federal government set signature bonuses between $3 million and $7 million per block, with any bid falling outside that range automatically disqualified. In cases where two or more companies submit identical highest bids, the commission will conduct a sealed rebid to determine the winner.
The commission added: "Companies with outstanding government liabilities, weak development track records, or regulatory non-compliance risked disqualification at any stage." Successful companies will be awarded Petroleum Prospecting Licences and may operate under either a Concession or a Production Sharing Contract framework, with the chosen model governing fiscal terms for up to 20 years.
Host Community and ESG Requirements
Bidders were also required to submit host community development plans and commit 3% of operating expenditure to Host Community Development Trusts, in line with the PIA. Environmental, social, and governance standards, as well as decarbonisation commitments, also formed part of the evaluation criteria.
Following the July 21 announcement, the NUPRC expects ministerial approval and formal contract signing to take place between July and October 2026, after which licences will become legally effective. The 2025 round follows the award of Petroleum Prospecting Licences to 12 companies across 19 blocks from the 2024 licensing round, as the government continues its strategy of expanding exploration and attracting long-term upstream investment.
Context: Crude Oil Prices
Earlier, Legit.ng reported that global oil prices surged sharply on Monday, April 13, after Donald Trump announced a naval blockade targeting Iran, raising fears of supply disruption across international energy markets. Brent crude, the global benchmark, rose more than 8% to trade above $103 per barrel on Monday, crossing the psychologically significant $100 threshold for the first time since last week, when prices briefly surged past $111 per barrel. US West Texas Intermediate (WTI) also climbed to $104.90 per barrel as of 05:25 AM (WAT), reflecting renewed risk sentiment among traders.
