Inside Nigeria's Oil Licensing Rounds: How the NUPRC Bid Process Works
Anslem Oshionebo, MD/CEO of Haricot Energies, explains the stages of a Nigerian Upstream Petroleum Regulatory Commission licensing round under the PIA.
Since the Petroleum Industry Act 2021, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has run competitive licensing rounds to award oil and gas blocks to qualified investors. The 2025 round, which opened in December 2025, offered 50 blocks across onshore, shallow water and deep offshore terrains. Having prepared for these processes at Haricot Energies, I find many companies underestimate how structured they are. This overview is based on the 2025 round; every round publishes its own guidelines, which always govern.
1. Registration
Applicants register on the NUPRC bid portal and pay a registration fee. Only companies incorporated in Nigeria can receive awards, although foreign companies can participate, typically through Nigerian entities or consortia.
2. Pre-qualification
The Commission assesses legal standing, financial capacity, technical capability and health, safety and environment credentials. In the 2025 round, financial thresholds were set by terrain, with higher requirements for deep offshore than for onshore and shallow water, and the operator needed relevant petroleum operating experience.
3. Data access
Pre-qualified applicants lease geological, geophysical and well data for the blocks they want to evaluate. This is where the technical team earns its keep: the bid is only as good as the interpretation behind it.
4. Technical and commercial bids
Bidders submit a technical bid, including the proposed work programme, and a commercial bid, including the signature bonus offered. In 2025, signature bonuses ranged from 3 million to 7 million US dollars per block, a bid guarantee was required, and each bidder was limited to two blocks.
5. Evaluation
Technical bids are evaluated first. Only bidders who pass the technical threshold have their commercial bids opened, at a public bid conference.
6. Award and conditions
Winners receive offer letters and must pay the signature bonus within a set period, then meet further conditions such as work programme guarantees and performance bonds before the licence is granted. Defaulting winners lose the award, and reserve bidders may be invited.
Typical documents for pre-qualification
- Certificate of incorporation and corporate documents of the bidding entity.
- Evidence of shareholding, ownership and beneficial owners.
- Audited financial statements and evidence of financial capacity, such as bank reference letters.
- Technical capability: experience of the operator or technical partner and key personnel.
- Tax clearance and other statutory compliance certificates.
- Health, safety, environment and community policies.
- Payment receipts for application and processing fees.
Always check the specific guidelines published for each round, because requirements and fees change.
How bids are evaluated
Technical bids are typically assessed on the proposed work programme, the quality of geological interpretation and the capability of the team. Commercial bids focus on the signature bonus offered and other commercial terms. The highest scoring combination wins, subject to the bidder meeting all conditions. Bidders that propose ambitious work programmes without credible funding risk losing the asset later if commitments are not met.
After the award
Winning is the beginning. Awardees must pay the signature bonus within the stated deadline, execute the licence, submit work programmes and budgets, and begin meeting commitments. Delays in payment can lead to the award being withdrawn. Planning the funding for the signature bonus, often several million dollars per block, is one of the most important parts of bid preparation.
What this means for bidders
The process rewards companies that combine credible technical teams, verifiable funding and clean documentation. Assembling those three after a round opens is usually too late.
Common questions
What is the NUPRC?
The Nigerian Upstream Petroleum Regulatory Commission, established under the Petroleum Industry Act 2021, regulates Nigeria's upstream oil and gas sector, including licensing rounds.
What is a signature bonus?
A payment made by the winning bidder to the government when a petroleum licence is awarded. It must be paid within the deadline set in the round guidelines.
Can foreign companies bid in Nigerian licensing rounds?
Bids are generally made through Nigerian-registered entities. Foreign companies often participate through a local subsidiary or partnership, subject to each round's guidelines.