morganable politics/Governance
The Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, said the country’s crude oil and condensate production had risen to 1.82 million barrels per day
KaNo —
The Federal Government has announced the 2026 oil licensing round, offering 40 oil blocks across land, shallow water and deepwater terrains as part of renewed efforts to attract investment into Nigeria’s upstream petroleum sector.
The announcement was made by the Nigerian Upstream Petroleum Regulatory Commission during its fifth anniversary celebration in Abuja on Tuesday.
The NUPRC Chief Executive, Oritsemeyiwa Eyesan, said the licensing round had received the approval of President Bola Tinubu and the Minister of Petroleum Resources, adding that the blocks would be open to investors with the required technical competence, financial capacity and commitment to developing the country’s petroleum resources.
She said the commission had learnt from previous licensing exercises and would make the 2026 process more transparent, predictable and competitive.
“Hello everyone, the wait is over. It is with great joy that I announce that pursu,ant 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 blocks across land, shallow water and deepwater terrains,” Eyesan said.
She added that Nigeria would need to remain competitive in attracting upstream capital, noting that investors had several options in deciding where to commit their funds.
According to her, investors were more likely to choose jurisdictions where regulations were clear, processes were predictable and available data could be trusted.
“We will not rest on our laurels. Competition for upstream capital is fierce, and it grows fiercer by the day. Investors have choices. They go where the rules are clear, where the process is predictable and where data can be trusted,” she said.
The licensing announcement comes as Nigeria records an increase in crude oil and condensate production.
The Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, said the country’s crude oil and condensate production had risen to 1.82 million barrels per day.
Lokpobiri disclosed this on Tuesday in Abuja, citing data submitted to his office on Monday.
He said the current production level represented an increase of more than 80 per cent compared with the level recorded when the Tinubu administration assumed office in 2023.
The minister attributed the growth partly to increased drilling activity, saying more than 73 rigs were now active in the country.
The development is expected to strengthen government efforts to expand production and improve the contribution of the petroleum sector to the economy.
The NUPRC also disclosed that it had approved 120 Field Development Plans since 2024, representing about $47.6bn in capital commitments.
Eyesan said the projects, when fully developed, were 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.
The commission said the expected increase in production from the approved developments would complement the new licensing round and support the government’s efforts to expand upstream activities.
On the bidding process, Eyesan said the 2026 licensing round would include measures aimed at strengthening transparency and accountability.
She said the new bidding guidelines would require every bidder to disclose its beneficial owners, while the evaluation methodology and results of the exercise would be published more fully.
According to her, the commission would also incorporate lessons from previous licensing rounds and recommendations made by the Nigeria Extractive Industries Transparency Initiative.
Eyesan said NEITI’s review of the 2022 to 2024 licensing rounds found the process to be generally professional, transparent and inclusive, but identified areas requiring further improvement.
These included the evaluation methodology, disclosure of results, public access to bidding information and beneficial ownership disclosure.
She said the NUPRC had accepted the recommendations and would implement them in the 2026 licensing exercise.
“The guidelines will also set out our evaluation methodology in full, provide for fuller publication of results and require disclosure of beneficial owners of every bidder, in keeping with NEITI’s counsel,” she said.
Eyesan also said the commission would publish the bidding timetable at the beginning of the exercise and adhere to the dates.
She explained that certainty around the timetable was important because investors needed adequate time to secure board approvals, mobilise funds and prepare their bids.
“Investors must plan. Boards must approve. Funds must be mobilised. Every one of these decisions depends on dates that hold. We will certainly hold,” she said.
The commission is also expected to improve communication with prospective investors through its licensing website and portal, virtual data room, webinars and a dedicated help desk.
Eyesan said all material clarifications provided during the process would be communicated to every participant to ensure that no bidder received information that was unavailable to others.
“And every material clarification will be shared with all participants. No bidder will know what others do not,” she said.
The 2026 licensing round follows the conclusion of the 2025 Nigerian Licensing Round, which attracted significant participation from local and international oil companies.
According to the NUPRC, 143 companies submitted 200 bids during the 2025 exercise, while 31 companies emerged as winners of 37 blocks.
The commission said the exercise also demonstrated growing investor interest in petroleum opportunities outside the traditional producing areas of the Niger Delta.
Frontier basins, including the Anambra Basin, Benue Trough, Chad Basin and Benin Basin, attracted investors during the previous licensing exercise.
The development represents a shift in the geographical focus of upstream investment, with companies showing interest in exploring petroleum potential in relatively less-developed basins.
Since the Petroleum Industry Act came into force in 2021, the NUPRC said it had conducted three licensing exercises: the 2022 Deep Offshore Mini Bid Round, the 2024 Nigerian Licensing Round and the 2025 Nigerian Licensing Round.
The exercises have resulted in the award of 57 Petroleum Prospecting Licences, according to the commission.
Eyesan said the licensing process was central to the reforms introduced by the Petroleum Industry Act, particularly its emphasis on competitive and transparent allocation of petroleum acreage.
“Of all the reforms the PIA brought, none speaks more to who we are than this: in Nigeria, petroleum acreage is won, not given. It is no longer discretionary,” she said.
She added that the legislation had replaced discretionary allocation with transparent and competitive bidding for Petroleum Prospecting Licences and Petroleum Mining Leases.
The commission said the 2026 exercise would also support Nigeria’s efforts to increase crude oil and condensate production while expanding gas development.
With production currently at 1.82 million barrels per day and several approved development plans awaiting full implementation, the government is looking to sustain the momentum by bringing additional acreage into active exploration and development.
The success of the new licensing round, however, will depend on the ability of the government and regulator to maintain the transparency, predictability and certainty promised to prospective investors.
For the NUPRC, the 40 blocks represent another opportunity to deepen investment in Nigeria’s upstream sector while implementing the competitive acreage allocation framework established by the Petroleum Industry Act.
