Oil & Gas
THE Federal Government has returned 13 of the 50 oil and gas blocks offered under the 2025/2026 Licensing Round to the national licensing pool after they failed to attract bids from investors.
The development was announced on Tuesday at the opening of the commercial bidding phase of the licensing round in Abuja by the Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission, NUPRC, Oritsemeyiwa Eyesan.
Eyesan said that while 13 assets did not receive any bids, the remaining 37 blocks generated strong commercial interest, attracting about 200 bids from 143 prequalified companies.
She described the level of participation as evidence of renewed investor confidence in the Nigerian upstream petroleum sector under the Petroleum Industry Act, PIA, 2021.
The commercial bid conference marks the next stage of the licensing process, during which financial offers from qualified bidders are opened and evaluated alongside their technical submissions.
Industry participants at the conference said that the blocks that failed to attract bids were largely located in frontier inland basins, where exploration risks and development costs remain significantly higher than in more established producing areas.
Analysts noted that investors have continued to favour producing or near-producing assets in the Niger Delta and shallow offshore areas, where existing infrastructure can reduce development costs and shorten the time to first production.
They also pointed to tighter global financing conditions for oil and gas projects, which have made investors more selective in allocating capital, particularly for exploration projects requiring substantial upfront investment.
Under the Petroleum Industry Act, the unawarded blocks will be returned to the national licensing pool. The Commission may offer them again in future licensing rounds, potentially with updated geological data or revised fiscal terms aimed at improving their attractiveness to investors.
The government may also consider out-of-cycle awards where qualified investors with the required technical and financial capacity express interest, subject to the approvals prescribed under the law.
Meanwhile, the NUPRC officials have begun evaluating the bids received for the 37 contested blocks. The assessment will consider both technical and commercial criteria, including proposed work programmes, signature bonus offers and the financial capacity of bidders before successful applicants are announced.
A.I
July 22, 2026
Tags: NUPRC oil blocks Oritsemeyiwa Eyesan.