Bidding For Upstream Oil And Gas Assets Under Nigeria's 2025 Licensing Bid Round

The right to explore, win, work, carry away and dispose of petroleum resources in Nigeria is granted to qualified entities through two key instruments: The Petroleum Prospecting Licence ("PPL") and the Petroleum Mining Lease ("PML").¹ These rights are not allocated arbitrarily. They are meant to be awarded through a regulated, transparent, and competitive bidding process conducted by the Nigerian Upstream Petroleum Regulatory Commission ("the Commission"), whose recommendations ultimately guide the Minister of Petroleum in making final awards.²

Following its formal announcement on 11 November 2025, the Commission has now launched the 2025 Licensing Bid Round Portal (the "Portal"), providing bidders with block information, pre-qualification requirements, bid guidelines, and the full schedule of the licensing exercise. This development marks the commencement of a structured and fully digital process intended to unlock Nigeria's undeveloped and fallow oil and gas fields across onshore and offshore basins.

This article focuses on key aspects of the Nigeria 2025 Licensing Round Guidelines, highlighting key considerations for prospective participants ranging from compliance obligations and prequalification thresholds to technical and commercial requirements, offering clarity on what bidders must understand as the 2025 Licensing Round progresses.

THE 2025 LICENSING ROUND GUIDELINES

The 2025 Licensing Round is structured to attract technically capable and financially able investors for the rapid exploration, development and early production of the assets placed on offer. The following are the material requirements bidders must understand based on the 2025 Licensing Round Guidelines.

1. The 2025 Licensing Round Stages³

The Licensing Round shall be conducted in the following stages:

1. A formal announcement for the commencement of the Licensing Round;
2. Advertisement;
3. Launch ofthe Licensing Round Portal;
4. Registration / Submission of Prequalification Documents;
5. Pre-Bid Conference;
6. Roadshow;
7. Evaluationof Submissions/Publicationof PrequalifiedApplicants;
8. Announcement of Prequalified Applicants;
9. Data Prying/leasing and or purchase of relevantreports;
10. Issuance of letters of invitation to Prospective Biddersto participate in the Bid;
11. Submission of Bids by Bidders;
12. Evaluation of Technical Bids;
13. Notification ofresults of Technical Bidsto successful Bidders;
14. CommercialBidConference;
15. Announcement ofwinning Bids; and
16. Ministerial approval/contracting/awards.

2. List of Blocks on Offer: The blocks on offer under the 2025 Licensing Round include PPLs 2A29–2A62 and PPL 2010 and PPLs 307, 308, 309, 700–703, 800– 803, 900–903.

3. Eligibility Is Strict and Time-Bound: Participation in the 2025 Licensing Round is tightly regulated and subject to strict deadlines.⁴ Only companies incorporated on or before 20 February 2026 are eligible to bid. Foreign companies can participate, but they must establish a Nigerian-incorporated entity before any award is finalised⁵.

Consortia are permitted if they submit a formal Consortium Agreement, designate a Lead Member, and appoint an Operator holding at least 30% participating interest.⁶ These requirements ensure that bidders are both legally established and operationally prepared to undertake petroleum exploration and production activities in Nigeria.

4. Registration: All interested applicants are to register on the Portal as indicated on the Commission's website and submit all required legal, technical, and financial information through the Portal.⁷

5. Submission of Applications for Participation in the 2025 Licensing Round⁸: Applications must be submitted electronically via the Portal by 4:30 p.m. on 20 February 2026 (unless extended). Late submissions will be rejected. Applicants are required to submit Notarised statutory declarations and formal attestations, including the Beneficial Ownership Declaration Form and allsupporting documents as certified true copies or originals. Other documents to be submitted include Curriculum vitae of key personnel, Memoranda of Understanding (if applicable), Bank guarantees, audited financial statements, Corporate Affairs Commission ("CAC") documents and tax clearance certificates.

A single consolidated notarised affidavit may be used to authenticate all declarations. Applicants must confirm that there have been no material changes to the submitted information or indicate and seek approval for changes. With their submissions, Applicants acknowledge the Commission's right to disclose their names, accept the risk of any errors in the Licensing Round Package, and agree to be bound by the provisions of the Guidelines. All documents must be in English, with certified translations provided where necessary. All applicable fees must be paid and evidenced before the submission deadline; failure to do so will render the application invalid.

6. Procedure for Submission of Bid Proposals:

1. The Guidelines clarify that, notwithstanding its provisions, the Commission reserves the right, as provided in Paragraph 13(a) of the Regulations, to accept or reject any Application or Bid, annul the qualification process, or reject all Applications or Bids at any time without liability or reason. If all Bids are annulled or rejected, the Commission may, at its discretion, invite eligible Bidders to submit fresh Bids.⁹
2. The Regulations require that a bid must consist of a bid proposal in a sealed envelope and a bid guarantee in another sealed envelope. At the conclusion of the bid process, the bid guarantee of unsuccessful bidders will be returned, while the bid guarantee of the winning bidders and reserve bidders will be retained and these are to remain in force until the license or lease is granted.¹⁰
3. Prequalified participants must submit a Technical Bid, a Commercial Bid, and a Bid Guarantee, collectively forming the complete Bid. Each component must be packaged in a separate, clearly marked envelope labelled Part A, Part B, and Part C respectively, and all three must be enclosed within an outer package clearly marked "Bid for Nigeria 2025", bearing the Bidder's name and addressed to the Commission's Chief Executive. Commercial Bids and Bid Guarantees must be submitted both in hard copy and in soft copy via the Portal, with the soft copy uploaded in encrypted form. The corresponding decryption keys must be presented at the Commercial Bid Conference. Evidence of payment of the Bid Fee and any data purchase is mandatory, and failure to provide proof of payment by the submission deadline renders the Bid invalid.
4. The Bid Guarantee, equivalent to 5% of the proposed Signature Bonus must be submitted with the Commercial Bid. The guarantee must be an ondemand payment bond, valid for 120 days after the Commercial Bid Conference (or longer if agreed). The Bid Guarantee must be issued either by an international bank with a minimum "BBB" rating from S&P Global, Fitch Ratings, or Moody's, or by a Nigerian bank with a minimum "BBB" rating from GCR, Augusto & Co, AM Best, or Data Pro. With the Commission's approval, a parent company with an equivalent rating may also issue the guarantee. Any Bid submitted without the required Bid Guarantee will be rejected.¹¹
5. Upon compliant submission, the Commission will acknowledge receipt of the Bid with an official receipt. This structured submission process is designed to ensure transparency, compliance, and proper documentation throughout the bid evaluation.

7. High Capital Thresholds for Eligibility: Bidders must demonstrate significant financial capacity to pre-qualify for the 2025 Licensing Round. The minimum average annual turnover, cash in bank, and bank guarantee are US$100 million for deep offshore blocks and US$40 million for onshore or shallow-water blocks.¹² Acceptable evidence of financial capability includes audited turnover, cash reserves, bank guarantees, or parent-company guarantees. These stringent requirements ensure that only financially robust companies capable of sustaining exploration and production activities are considered.

8. Mandatory Data Purchase: Bidders must acquire relevant geological, geophysical, and well data from the National Data Repository or approved multiclient companies before submitting a bid¹³. Proof of purchase is a strict prerequisite for bid acceptance¹⁴. The Commission provides no warranty on the accuracy or completeness of the data, placing the responsibility on bidders to conduct their own due diligence¹⁵.

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Footnotes

1. Section 70 (1) Petroleum Industry Act ("the Act").

2. Section 73 of the Act.

3. Para2.1 of the Nigeria 2025 Licensing Round Guidelines (the "Guidelines").

4. Para. 6.2 of the Guidelines.

5. Ibid.

6. Para 6.3-6.4 of the Guidelines.

7. Para 10 Ibid.

8. Para 11 Ibid.

9. Para 15.1 Ibid.

10. Regulation 12 of the Regulations.

11. Para 17.6 of the Guidelines.

12. Para. 12.2 Ibid.

13. Para. 7.1–7.5 Ibid.

14. Para. 7.6 Ibid.

15. Para. 7.7 Ibid.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.