Nigeria’s 2025 Oil Licensing Round: Unlocking Value, Restoring Investor Confidence
Nigeria is preparing to launch its 2025 oil and gas licensing round on 1 December 2025, marking the second consecutive annual bidding exercise and reinforcing the Nigerian Upstream Petroleum Regulatory Commission’s (NUPRC) commitment to predictable, transparent upstream governance. Coming just one year after the highly praised fully digital 2024 round, the 2025 exercise is positioned as one of the most significant since the Petroleum Industry Act (PIA) 2021.
Strategic Focus
The round prioritises discovered but undeveloped fields, including fallow assets recovered under the PIA’s “drill-or-drop” provisions (Section 94). Rather than frontier exploration, the emphasis is on rapidly monetising existing resources, boosting oil and gas production, supporting domestic energy needs, and aligning with Nigeria’s energy-transition and SDG commitments. Approximately 24 blocks — spanning onshore, shallow-water, continental shelf, and deep-offshore acreage — are expected to be offered, combining relinquished idle assets and newly delineated blocks.
Enhanced Transparency and Process
Building on the success of the 2024 digital platform, the 2025 round will feature:
– Real-time, non-discriminatory online tracking for applicants
– A three-stage structure: pre-qualification (technical, financial, and compliance checks), open technical evaluation, and encrypted, livestreamed commercial bidding
– Strict adherence to PIA-mandated criteria, eliminating the opacity and protracted disputes that characterised previous rounds
Likely Blocks
Public data, particularly the June 2025 NUPRC Concession Situation Report, point to high-probability candidates including OMLs 24, 29, 33, 40, 42, 49, 53, and 67, along with associated PPLs. Most are located in the onshore/shallow-water Niger Delta, with some continental-shelf and deep-offshore opportunities offering shorter development cycles.
Expected Participants
International Majors: TotalEnergies has publicly endorsed the process and signalled strong interest, especially in gas and deepwater. Shell, Eni, and Chevron may participate selectively, focusing on de-risked, high-margin assets.
Indigenous & Regional Independents: Established players such as Seplat Energy, First E&P, Ardova, and Famfa Oil, plus numerous smaller local operators, are expected to bid either directly or via joint ventures.
New Entrants & Consortiums: Service-company-backed groups, EPC/FPSO providers, and investment-fund partnerships that can demonstrate rapid development capability and infrastructure access will be competitive.
Broader Implications
The annual licensing cadence, full PIA implementation, and political backing are restoring investor confidence by providing regulatory certainty and predictability. The round is explicitly designed to attract long-term capital, accelerate production from near-term assets, and address infrastructure and financing gaps through collaboration with global banks and development institutions.
In summary, Nigeria’s 2025 licensing round represents a pivotal step toward maximising existing hydrocarbon resources, enhancing transparency, and creating a stable investment climate — key pillars for sustained growth in Africa’s largest oil and gas sector.
