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The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has launched the dedicated bid portal 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.
3 December 25
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Up to 50 blocks are listed for this round, comprising 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 USD 3 million to USD 7 million, and bank-issued bonds in the sum of 5% of the 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 USD 100 million, or a USD 100 million bank or parent guarantee, while onshore and shallow-water blocks must have a USD 40 million turnover or cash in bank or a 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.
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Should you have any questions regarding the information in this legal alert, please do not hesitate to contact Oghogho Makinde, Cephas Caleb or Oghenetega Abu.
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Contributors
Aaron Alasa