Nigeria Awards 37 Oil Blocks Targeting 300,000 Bpd Boost
Nigeria has awarded 37 oil and gas blocks to 31 companies in a licensing round that targets a 300,000 barrels per day production increase within three years.
The Nigerian Upstream Petroleum Regulatory Commission has awarded 37 oil and gas blocks to 31 companies following a competitive bidding process in Abuja. A total of 143 firms submitted 200 bids for the awarded blocks, which were drawn from 50 assets originally put on offer.
The awarded acreage holds the potential to add roughly 500 million barrels to Nigeria’s hydrocarbon reserves. Commission Chief Executive Oritsemeyiwa Eyesan stated the assets are expected to contribute at least 300,000 barrels per day of crude oil and condensate production over the next three years. This output is a necessary step toward Nigeria’s goal of reaching three million barrels per day by 2030.
Frontier basins draw bids, but risks remain
“This is the first time in Nigeria’s energy history that frontier basins would attract such a level of investor interest,” the commission noted. Blocks on offer spanned established regions like the Niger Delta, as well as frontier areas including the Chad Basin, Anambra Basin, and Benue Trough.
However, 13 of the 50 offered blocks failed to attract any bids. Eyesan attributed this to the unproven nature of frontier assets. “Frontier means that they have not yet been de-risked, and so we were not surprised when we saw that some of these assets returned with no bidders,” she said, adding the government will conduct further work before re-offering them.
Strict terms replace discretionary awards
Winners, including SSonic Petroleum Limited, Asharami, and Stardeep Petroleum, face rigorous conditions under the Petroleum Industry Act 2021. They must pay applicable signature bonuses and receive ministerial approval within 90 days or lose their entitlement to the assets.
The regulatory framework explicitly prohibits the discretionary allocation of licenses that characterized previous regimes. Minister of State for Petroleum Heineken Lokpobiri noted the legal shift, stating: “I like what the PIA said, that these licences that will be issued today or that will be won today should not be trophies as it has been in the past.”
To enforce this, the commission is mandating a drill-or-drop provision. “The government is not seeking speculative holders of acreage; it is seeking partners with the capacity, discipline and commitment to deliver measurable production and economic value,” Eyesan said.
Geopolitics boost investment case
Nigerian officials leveraged current geopolitical tensions to frame the investment opportunity. Lokpobiri argued that the conflict between Iran and the U.S. elevates the strategic value of Nigerian assets in the Gulf of Guinea.
The licensing round also supports the country’s broader gas strategy. Minister of State for Petroleum Resources (Gas) Ekperikpe Ekpo emphasized that new upstream investments will expand domestic gas supply and support industrialization under the decade of gas initiative. Nigeria currently holds proven reserves of 37.01 billion barrels of crude oil and condensate, alongside 215.19 trillion cubic feet of gas.
