Abuja, Nigeria — In a pivotal development for Nigeria’s oil and gas sector, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has successfully awarded 37 oil and gas blocks to 31 companies in the 2025 Licensing Round. This marks the first time that frontier basins, including the Benin, Anambra, Chad, and Benue Trough, have received bids, signaling a significant shift in Nigeria’s exploration strategy.
The licensing round, which drew approximately 200 bids from 143 companies, represents a major upstream licensing exercise since the implementation of the Petroleum Industry Act (PIA).
The PIA, which came into effect, has been instrumental in transforming the nation’s oil sector, aiming to attract more investment and streamline operations. Winners of the bidding process have a 90-day window to pay signature bonuses, with failure to do so potentially leading to the loss of their blocks under the ‘drill or drop’policy. This policy underscores the government’s commitment to ensuring that awarded blocks lead to actual exploration and production activities.
Thirteen of the 50 blocks offered during the licensing round did not attract bids, indicating potential challenges in some areas.
The awarded blocks span a range of terrains, from the Niger Delta onshore and shallow — water areas to deep-offshore zones, as well as frontier basins such as the Benin, Anambra, and Chad basins, and the Benue Trough. This diversity in locations is expected to contribute to the overall development of the nation’s oil and gas sector.
As the awarded companies move forward with their exploration activities, the success of these projects will be closely watched by industry stakeholders and the Nigerian public alike.
The timeline for the production start of the newly awarded blocks will be a key indicator of the effectiveness of the PIA and the NUPRC’s regulatory framework.
*Additional reporting by ImNews | Sources consulted: 5*
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This original article was produced by the ImNews editorial team
Source: Africa.businessinsider
Source: Ayodeji Adegboyega
