- within Energy and Natural Resources topic(s)
- in United Kingdom
- with readers working within the Oil & Gas and Law Firm industries
- within Energy and Natural Resources, Litigation, Mediation & Arbitration and Technology topic(s)
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has now launched the dedicated bid portal (https://br2025.nuprc.gov.ng/) for registrations and submissions of bids in line with the Petroleum Industry Act, 2021 (PIA) and the Petroleum Licensing Round Regulations, 2022. The NUPRC in the 2025 round seeks to grow reserves and production and deepen gas development with transparency and competitive bidding.
Up to 50 blocks are listed for this round comprising of 15 onshore blocks, 19 shallow-water blocks, 15 frontier acreage blocks, and 1 deep offshore block. The NUPRC plans a bid process that is structured and technology-driven, with the bid portal serving as the primary interface for data access, registration, and engagement with bidders.
We note that clear financial and fiscal requirements to ensure credible participation have been established by the NUPRC which is keen to maintain flexibility for investors. Signature bonuses range from US$3 million to US$7 million, and bank issued bonds in the sum of 5% of signature bonus will be required. Financial capacity thresholds depend on block type as follows: deep offshore blocks require a minimum average annual turnover or cash at bank of US$100 million, or a US$100 million bank or parent guarantee, while onshore and shallow-water blocks must have US$40 million turnover or cash in bank or guarantee. For consortia, financial capacity may be aggregated, provided commitments are contractually documented for the members.
The bids will be open to Nigerian and foreign companies to apply as with prior bid rounds. Foreign bidders may participate in the bids but must incorporate a Nigerian entity before the licence award stage, so that a Nigerian registered company is the formal awardee. A consortium of investors may apply, and the designated operator must hold a 30% participating interest in the consortium.
With respect to the contractual framework, successful bidders will have the option to operate under either a concession or a production sharing contract (PSC) framework, providing flexibility to align commercial and fiscal terms with their investment strategy.
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.
