The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has unveiled the financial and technical requirements for the 2025 Petroleum Licensing Round, setting minimum annual turnover thresholds of $100 million for bidders seeking deep offshore assets and $40 million for those targeting onshore and shallow-water blocks.
In a Frequently Asked Questions (FAQ) document released on Monday, the commission said the new framework is intended to boost investment, expand oil and gas reserves, deepen Nigerian content, and promote long-term energy security. As part of efforts to reduce entry barriers, signature bonuses have been pegged between $3 million and $7 million.
A signature bonus is the one-time, upfront payment an oil or gas firm makes upon securing rights to explore or develop a petroleum block.
According to the Gbenga Komolafe-led commission, the ongoing licensing round also aims to attract Foreign Direct Investment (FDI), boost production, increase gas utilisation and create value for both government and investors. Successful bidders for the 50 Petroleum Prospecting Licences (PPLs) will have rights to crude oil and natural gas recovered during exploration and appraisal tests.
The PPLs carry an initial three-year tenure, extendable by another three years for onshore and shallow-water blocks and five years for deepwater and frontier assets. The entire bid process is scheduled to run from November 17, 2025, to July 17, 2026.
NUPRC said the exercise is open to both local and foreign firms. While foreign companies may participate without prior Nigerian registration, they must be incorporated under the Companies and Allied Matters Act (CAMA) before any licence can be awarded.
The commission listed grounds for disqualification, including indebtedness to government, poor performance on previously awarded assets, and insolvency.
Technical competence will be assessed based on geological and geophysical work experience, drilling and reservoir engineering, production technology, and project development capability. Financial capability will focus on demonstrated turnover thresholds and overall viability.
“All bidders must submit bids within the approved range of $3 million to $7 million. Bids below this range are non-compliant and will not be evaluated,” the document stated.
Bidders are restricted to a maximum of two assets—whether applying alone or through consortium arrangements. Any company with equity or management involvement in multiple consortiums will have all entries counted as one.
The commission also clarified that newly formed entities or special-purpose vehicles may participate provided their shareholders meet all qualification requirements.
NUPRC denies withholding Frontier Exploration Fund
The regulator also dismissed reports that it was blocking the release of the Frontier Exploration Fund (FEF) to the Nigerian National Petroleum Company Limited (NNPC Ltd).
Its Head of Media and Strategic Communication, Eniola Akinkuotu, said NUPRC had already approved the release of $185.12 million and N14.9 billion, stressing that the fund is domiciled with the Central Bank of Nigeria (CBN), not NUPRC.
He noted that funds are approved strictly based on certified activities. “If a contract has not been awarded, we cannot authorise payment,” he said.
Akinkuotu added that PwC was engaged to review NNPC’s claims for transparency. He said the commission approved a final release of $140 million on November 27, 2025, in addition to earlier disbursements.
He urged the public to disregard allegations tied to anonymous sources, noting that the Minister of State for Petroleum, Senator Heineken Lokpobiri, had already denied any investigation into NUPRC’s handling of the fund.
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