Commission Unveils Incentives, Warns Investors Against Holding Idle Assets
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) on Wednesday met with prospective investors bidding for the 50 oil and gas blocks on offer in the 2025 Oil Licensing Round, unveiling reduced entry costs and stricter expectations for asset development.
The pre-bid conference, held in Lagos, drew top government officials, representatives of the Oil Producers Trade Section (OPTS), Independent Petroleum Producers Group (IPPG), indigenous operators, emerging players, and other key stakeholders in Nigeria’s oil and gas industry.
At the meeting, the Chief Executive of NUPRC, Engr. Oritsemeyiwa Eyesan, announced a downward review of entry costs for the licensing round, including adjustments to signature bonuses and other pre–first oil charges, as part of reforms aimed at boosting investment in Nigeria’s upstream sector.
Speaking on the theme “Growing Upstream Investment in Nigeria Through Licensing Round: The Bid Process and the Opportunities,” Eyesan said the reforms were made possible largely by the Petroleum Industry Act (PIA), which has reshaped asset ownership and accountability in the sector.
According to her, many of the assets being offered were recovered fallow fields, reclaimed due to non-performance by previous license holders.
“With the advent of the PIA, if you do not work your block, it will be taken from you. Many of the assets on offer today are recovered fallow fields,” Eyesan said, while commending the Federal Government and the architects of the PIA for strengthening regulatory enforcement.
She explained that lessons from earlier licensing rounds had influenced the structure of the 2025 exercise, with a renewed focus on attracting technically capable and financially sound operators.
“One of the key lessons from previous bidding rounds is the need to ensure that assets go to operators who can develop them. We are deliberately prioritising technical competence in this round,” she said.
Eyesan also announced a major policy shift to lower barriers to entry, revealing that President Bola Ahmed Tinubu had approved a revision of signature bonuses and other charges payable before first oil.
“The cost of entry was previously prohibitive. We are pleased to announce that Mr President has approved a review of the signature bonus. In addition, several fees payable by bidders before first oil have been adjusted,” she said, adding that the reforms align with recent tax legislation designed to support industry growth and economic sustainability.
On gas development, Eyesan said government incentives were beginning to yield results, with several Final Investment Decisions (FIDs) already taken, which she noted would positively impact the ongoing licensing round.
She described the 2025 licensing exercise as a clear signal of Nigeria’s determination to position itself as a preferred destination for energy investment.
“The number of indigenous companies producing today has grown significantly, and the industry is demonstrating that Nigeria is becoming an increasingly attractive investment destination,” she said.
In his remarks, Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, said the licensing round was built on transparency and accountability, warning investors against acquiring assets without development plans.
“These assets are not status symbols. A licence does not mean ownership in perpetuity. You are licensed to operate within a defined timeframe,” Lokpobiri said, noting that some operators had held assets for decades without development.
He added that the bidding process fully complies with Section 73 of the PIA and clarified that the law does not provide for refunds of bidding fees or signature bonuses.
Chairman of the Senate Committee on Upstream, Senator Eteng Williams, pledged legislative backing for the licensing process, stressing the urgency of increasing national production.
“We have Project One Million Barrels, and we must deliver. The future of Nigeria depends on what we do with these assets,” he said.
Separately, Eyesan later met with oil and gas operators, where she unveiled her strategic agenda for Nigeria’s upstream sector.
In a statement issued by NUPRC’s Head of Media and Strategic Communication, Eniola Akinkuotu, the agenda is anchored on three pillars: production optimisation and revenue expansion; regulatory predictability and speed; and safe, governed, and sustainable operations.
The vision 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.
Eyesan said the commission plans to increase output by recovering shut-in volumes, reducing losses, arresting production decline, and accelerating time-to-first oil without increasing transaction costs.
She disclosed that the commission had recently restored production from a long shut-in asset and would continue similar interventions.
To improve regulatory efficiency, Eyesan said NUPRC would operate regulation as a service, enforce rules transparently, and introduce Service Level Agreements (SLAs) for major approvals.
She also announced plans to launch a digital workflow system for permitting, reporting, and data submissions, alongside internal reforms to eliminate conflicting regulatory actions.
Stakeholders were urged to submit matured projects for consideration before the end of the first quarter of 2026 to enable faster, coordinated approvals.
The NUPRC chief further unveiled a monthly CCE–Operators Leadership Forum involving NNPC, OPTS, IPPG, and emerging players, focused on approval timelines, production restoration, infrastructure integrity, and gas monetisation.
She stressed the importance of accurate hydrocarbon measurement, stating that every barrel produced must be tracked and accounted for to curb losses and improve transparency.
About the Author
