Nigeria Doubles Down on Oil Licensing Rounds to Boost Production

Nigeria's Upstream Petroleum Regulatory Commission (NUPRC) is shifting its oil licensing strategy to twice-yearly rounds, aiming to boost production by 300,000 barrels per day within three years. This significant departure from previous practices follows the implementation of the Petroleum Industry Act in 2021.

The new approach, which could lead to annual or even bi-annual events, marks a major improvement over the past regime, where Nigeria went between five and 10 years without a bid round. Since the PIA's enactment, the scale and frequency of licensing exercises have increased, with seven blocks offered during the 2022/2023 mini-bid round, 19 blocks put up for auction in 2024, and 50 assets offered in the 2025 licensing round.

CEO Mrs. Oritsemeyiwa Eyesan stated that the regulator is seeking a predictable and faster licensing cycle to attract new operators and increase investment. The NUPRC targets between 300,000 and 600,000 barrels per day from successive licensing rounds. Plans for the next round are already underway, with the exercise expected to commence by early October.