According to an update issued by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), bidders for the new round will now submit offers within a narrowed band of $3 million to $7 million, depending on the category of asset. This reflects a continued effort to reposition Nigeria’s petroleum regime for global competitiveness—an agenda already signaled in 2024 when signature bonuses were slashed dramatically from roughly $200 million to $10 million.
NUPRC Chief Executive Gbenga Komolafe explained earlier that comparative analysis with countries such as Brazil showed the need for Nigeria to reduce its financial thresholds for new entrants. With the latest revision, deepwater assets carry a signature bonus of $7 million, while shallow-water and onshore blocks attract $3 million, marking a further easing from last year’s structure.
The regulator reiterated that signature bonuses—non-refundable fees paid upon the signing of an exploration agreement—must be settled in U.S. dollars, as the designated accounts are not naira-denominated.
Licensing Terms and Duration
Winners of the 2025 round will receive a Petroleum Prospecting Licence (PPL), granting exclusive rights to drill exploration and appraisal wells. The licence also provides the non-exclusive right to conduct petroleum exploration operations in the designated area and to lift hydrocarbons produced during test activities.
The PPL carries an initial three-year term for onshore and shallow-water blocks, extendable by another three years. Deepwater and frontier assets have five-year terms.
Two-Stage Bidding Structure
The commission is maintaining a two-stage bid process:
- Qualification Stage – Applicants or consortia submit detailed documentation for evaluation in line with the Petroleum Licensing Regulations and bidding guidelines. Only qualified applicants proceed.
- Bid Stage – Shortlisted parties sign a Confidentiality Agreement before submitting technical and commercial bids.
To ensure fairness and prevent over-concentration, NUPRC placed a cap: no bidder may apply for more than two assets, either individually or through multiple consortia. Any overlapping ownership or management interests will be aggregated and treated as a single bid.
Blocks on Offer
A total of 50 blocks spanning onshore, shallow-water, and deep-offshore terrains are available. These include assets under the PPL 2A series, PPL 2010, PPL 307–309, as well as the PPL 700, 800, and 900 series.
Together, the adjustments mark one of Nigeria’s most investor-friendly licensing frameworks in recent years, as the government seeks to revive exploration activity, improve competitiveness, and reverse declining upstream investment.