Kingsley Ohens reporting
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has intensified efforts to attract investment into Nigeria’s upstream petroleum sector, engaging prospective bidders for the 50 oil and gas blocks on offer in the 2025 Oil Licensing Round and unveiling far-reaching reforms aimed at lowering barriers to entry.
At a pre-bid conference held in Lagos, which drew senior government officials, industry leaders, international and indigenous operators, and other stakeholders, the commission outlined the modalities, expectations, and opportunities underpinning the upcoming licensing exercise. Central to the discussions was the government’s renewed commitment to transparency, regulatory efficiency, and asset development under the Petroleum Industry Act (PIA).
Chief Executive of NUPRC, Mrs. Oritsemeyiwa Eyesan, announced a reduction in entry costs for the licensing round, including a downward revision of signature bonuses and other fees payable before first oil. The measures, she said, were approved by President Bola Ahmed Tinubu as part of broader reforms to stimulate upstream investment and accelerate asset development.
Eyesan noted that the PIA has fundamentally reshaped Nigeria’s upstream landscape by enforcing disciplined acreage management. Under the law, undeveloped assets can be reclaimed, resulting in the recovery of several fallow fields now being offered in the 2025 round. She explained that lessons from previous bid rounds had informed a sharper focus on attracting technically competent operators capable of rapidly developing the assets.
She added that incentives introduced to unlock Nigeria’s vast gas resources were beginning to yield results, with several Final Investment Decisions already reached. According to her, these developments reinforce Nigeria’s ambition to position itself as a preferred investment destination in the global energy sector, particularly as indigenous participation continues to expand significantly.
Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, underscored the government’s resolve to ensure transparency and accountability in the licensing process. He stressed that petroleum licenses are not status symbols but time-bound rights that must be actively developed in line with the PIA, warning against the historical practice of holding assets without progress.
The National Assembly also pledged its support. Chairman of the Senate Committee on Upstream, Senator Eteng Williams, said the legislature fully backs the licensing round, describing it as critical to achieving Nigeria’s production ambitions, including the government’s “Project One Million Barrels” initiative.
Beyond the licensing round, Eyesan unveiled a broader strategic agenda for Nigeria’s upstream sector anchored on three pillars: production optimisation and revenue expansion; regulatory predictability and speed; and safe, governed, and sustainable operations. The agenda aligns with President Tinubu’s Renewed Hope Agenda and targets crude oil production of two million barrels per day by 2027 and three million barrels per day by 2030.
Key initiatives include accelerating time-to-first oil, recovering shut-in production, improving hydrocarbon accounting, strengthening health, safety and environmental standards, and deploying digital workflows for permitting, reporting, and data submissions. The commission also plans to publish Service Level Agreements for major approvals to enhance predictability and investor confidence.
To deepen engagement, NUPRC has instituted a monthly Chief Executive–Operators Leadership Forum involving all operators and industry groups, aimed at resolving systemic bottlenecks in approvals, infrastructure integrity, production restoration, and gas monetisation.
Collectively, the reforms signal a decisive shift toward a more disciplined, investor-friendly, and performance-driven upstream sector, as Nigeria seeks to unlock its hydrocarbon potential and secure sustainable growth in a competitive global energy market.
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