FG opens 40 oil blocs for fresh investment

The Federal Government has opened 40 oil blocs for bidding in the 2026 licensing round as it seeks to attract fresh investment and boost Nigeria’s crude oil and gas production.

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) announced the licensing exercise on Tuesday in Abuja during its fifth anniversary celebration.

The blocks cut across land, shallow water and deepwater terrains and will be open to investors with the required technical expertise, financial capacity and commitment to develop the assets.

NUPRC Chief Executive, Oritsemeyiwa Eyesan, said the exercise followed approvals by President Bola Tinubu and the Minister of Petroleum Resources.

“Ladies and gentlemen, the wait is over. It is with great joy that I announce that pursuant to the approval of His Excellency, President Bola Tinubu, and the Minister of Petroleum Resources, the Nigerian 2026 Licensing Round is hereby announced.

“This round offers 40 blocs across land, shallow water and deepwater terrains. They are open to investors with the technical competence, financial capability and, above all, the commitment to develop Nigeria’s petroleum resources,” she said.

Eyesan said the commission would introduce stronger transparency measures in the 2026 round, including mandatory disclosure of the beneficial owners of all bidders.

She added that the evaluation methodology and results would be published more fully, while the licensing timetable would be released at the beginning of the process and strictly followed.

The announcement comes as Nigeria’s oil production continues to rise.

Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, said the country’s crude oil and condensate production had increased to 1.82 million barrels per day, representing more than an 80 per cent rise from the level recorded when the Tinubu administration assumed office in 2023.

Lokpobiri, who disclosed this in Abuja on Tuesday, said the increase was supported by rising drilling activity, with more than 73 rigs currently active in the country.

Eyesan also disclosed that the NUPRC had approved 120 Field Development Plans since 2024, attracting about $47.6 billion in capital commitments.

According to her, the projects are expected to add 1.74 million barrels of oil and 13.9 billion standard cubic feet of gas per day to Nigeria’s production capacity when fully developed.

The commission said the new licensing round would build on lessons from previous exercises and recommendations by the Nigeria Extractive Industries Transparency Initiative (NEITI).

NEITI’s review of the 2022–2024 licensing rounds found the processes generally professional, transparent and inclusive, but recommended improvements in evaluation methodology, disclosure of results, public access to bidding information and beneficial ownership disclosure.

Eyesan said the commission had accepted the recommendations and would incorporate them into the 2026 process.

She said prospective investors would have access to information through the licensing website and portal, virtual data room, webinars and a dedicated help desk.

The NUPRC boss said all material clarifications would be shared with every participant to prevent any bidder from gaining an unfair advantage.

The 2026 round follows the conclusion of the 2025 licensing exercise, in which 143 companies submitted 200 bids, with 31 companies emerging as winners of 37 blocks.

Eyesan said the 2025 round also demonstrated growing investor interest in frontier basins outside the traditional Niger Delta producing areas, including the Anambra Basin, Benue Trough, Chad Basin and Benin Basin.

Since the Petroleum Industry Act came into force in 2021, the NUPRC has conducted three licensing exercises — the 2022 Deep Offshore Mini Bid Round, the 2024 Nigerian Licensing Round and the 2025 Nigerian Licensing Round — resulting in the award of 57 Petroleum Prospecting Licences.

Eyesan said assets offered in previous licensing exercises could, upon successful development, add about 500 million barrels of reserves and at least 300,000 barrels per day of crude oil and condensate production within five years.

She said the expected additions would support Nigeria’s target of reaching three million barrels per day by 2030.

The assets are also expected to contribute about 20 trillion cubic feet of gas reserves and 50 million standard cubic feet of gas per day in production, supporting the Federal Government’s Decade of Gas initiative.

Eyesan, however, warned successful bidders that securing a licence would carry an obligation to develop the assets.

“To those who will win, my message remains the same: Drill or Drop. A licence is a commitment to Nigeria, not a trophy on the wall,” she said.

She said full details of the blocks, eligibility requirements and participation procedures would be published on the NUPRC website and dedicated licensing portal in the coming days.