Key points
- Petroleum ministers urged successful bidders in the 2025 Licensing Round to begin developing awarded assets without delay.
- They warned against holding oil licences as investment trophies or using them solely to attract partners.
- The ministers said reforms under the Petroleum Industry Act (PIA) have made Nigeria’s licensing process more transparent and competitive.
- The Federal Government said new upstream investments are critical to boosting oil production and advancing the Decade of Gas Initiative.
Main story
The Ministers of State for Petroleum Resources, Sen. Heineken Lokpobiri (Oil) and Dr Ekperikpe Ekpo (Gas), have urged successful bidders in the 2025 Licensing Round to immediately develop their awarded assets to boost Nigeria’s oil and gas production.
The ministers made the call on Tuesday at the Commercial Bid Conference of the 2025 Licensing Round organised by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) in Abuja.
Lokpobiri cautioned successful bidders against treating oil licences as investment trophies or using them merely to search for technical and financial partners without commencing exploration and development.
He recalled that some licence holders in the past acquired oil blocks but failed to develop them, instead showcasing the assets at international conferences while seeking investors.
According to him, reforms introduced under the Petroleum Industry Act (PIA) have eliminated discretionary allocation of oil blocks, making the licensing process more transparent and competitive.
“Under the current legal framework, oil blocks are awarded through a competitive process rather than ministerial discretion.
“In the past, I have seen people who go around all the conferences in the world wearing the licenses like trophies and using them merely to seek partners, without carrying out exploration.
“These licences that we issue today should not be held as trophies, rather successful bidders should develop the assets immediately to boost production,” he said.
Lokpobiri described Nigeria as one of the world’s most attractive destinations for upstream oil and gas investment, adding that recent geopolitical developments had further strengthened the strategic value of the country’s hydrocarbon resources.
Speaking at the event, Ekpo said the 2025 Licensing Round marked another milestone in Nigeria’s commitment to developing its petroleum resources through a transparent, competitive and credible framework established under the PIA.
He said the Federal Government remained committed to creating an enabling environment that would attract investment, accelerate exploration and production, and unlock the full value of Nigeria’s hydrocarbon resources.
According to him, fresh upstream investments are essential to the success of the Decade of Gas Initiative by increasing gas reserves, expanding domestic gas supply, supporting industrialisation, improving energy access and strengthening Nigeria’s position in global gas markets.
Ekpo added that the PIA, alongside ongoing policy and fiscal reforms, had improved investor confidence by promoting regulatory certainty, transparency and ease of doing business.
He also commended the NUPRC for conducting the licensing process with professionalism, transparency and integrity, while encouraging investors to take advantage of Nigeria’s oil and gas opportunities.
The issues
Nigeria is seeking to increase crude oil production, grow gas output and attract fresh investment into the upstream sector. The government has consistently emphasised that awarded licences should translate into exploration and production rather than remain undeveloped.
What’s being said
“These licences that we issue today should not be held as trophies, rather successful bidders should develop the assets immediately to boost production.” — Heineken Lokpobiri, Minister of State for Petroleum Resources (Oil)
What’s next
Successful bidders will be expected to meet post-award obligations and commence exploration and development activities as the government intensifies efforts to increase oil production and advance its Decade of Gas Initiative.
Bottom line
The Federal Government is signalling that securing an oil block is no longer an end in itself, with licence holders expected to move quickly from acquisition to production under the Petroleum Industry Act.
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