Global Energy Uncertainty Triggers Rush for Nigerian Assets as 143 Firms Battle for 37 Oil Blocks

…NUPRC Unveils Successful Bidders, Returns 13 Blocks to Licensing Pool, as PANDEF Demands 60 Percent Slots for Niger Delta

By Emmanuel Olugua
The global energy crisis triggered by the Iran war is rapidly repositioning Nigeria as one of the world’s safest long-term destinations for oil investment, with the Federal Government announcing that 143 companies competed for 37 oil and gas assets in the 2025 Licensing Round as international investors increasingly diversify away from the volatile Middle East.

The conflict, which erupted on 28 February 2026, created an unprecedented geopolitical risk premium after severely disrupting Middle East oil exports and threatening shipping through the Strait of Hormuz. The resulting uncertainty has prompted international oil companies and crude buyers to aggressively seek alternative sources of supply, with Nigeria’s light sweet crude exported through the Gulf of Guinea emerging as one of the most attractive options.

Against that backdrop, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) on Tuesday announced that although 13 of the 50 oil and gas blocks offered during the licensing exercise failed to attract bids and would be returned to the national licensing pool, investor appetite for the remaining assets was exceptionally strong.

Speaking at the 2025 Commercial Bid Conference in Abuja, the Chief Executive of the NUPRC, Oritsemeyiwa Eyesan, disclosed that 143 companies submitted about 200 commercial bids for the 37 oil and gas assets after a rigorous qualification process.

According to her, the exercise initially attracted expressions of interest from nearly 300 companies before the prequalification stage reduced the number to 196, with 143 firms eventually qualifying for commercial bidding.

“At the end of the exercise, we had 50 blocks on offer, but representations were received for only 37 of them. The remaining 13 blocks will be returned to the licensing basket,” she said.

Industry analysts say the surge in participation reflects changing global investment priorities as energy companies seek to reduce dependence on the Middle East by securing production assets in politically stable jurisdictions. Nigeria’s abundant reserves, premium crude grades, and ongoing reforms under the Petroleum Industry Act have significantly enhanced its attractiveness to investors looking beyond the Gulf region.

The geopolitical upheaval has also translated into substantial financial gains for Nigeria’s petroleum industry. With international crude prices surging during the conflict and Bonny Light reportedly climbing above $130 per barrel at certain periods, Nigerian producers enjoyed a revenue windfall that strengthened their balance sheets and enabled many indigenous operators to pursue aggressive expansion plans.

That improved financial capacity is widely believed to have intensified competition during the commercial bid conference, with local firms joining international investors in pursuing strategic acreage capable of boosting reserves and future production.

Among the companies that emerged as successful bidders are Sonic Petroleum Limited, CFP Pipeline and Flowlines, Dutchford E&P Limited, Attabanson Global Company Limited, Rosem Energy Limited, Pivot-GIS Limited, Network E&P, Asharami, LexOil, BVOF, Gupsco Energy Limited, Saratoga, Volante, Concept-Reel Petroleum Services Limited, Clinton Oil Field, Nuway Oaklane Limited, Ramec, Italia, Blueridge E&P, Up Energies Limited, AYM Shafa, Blackrock Holdings Limited, Funtay Integrated Business Limited, Riparian Development and Production Limited, Nikstallis, Stardeep Petroleum, Dakoda & U Limited, Southborne Oil and Gas Limited, Lanaka Petroleum, Highban Resources Limited and Eyre Energy Limited.

The 2025 Licensing Round, launched under the Petroleum Industry Act (PIA) 2021, offered 50 oil and gas blocks across seven sedimentary basins, including 16 onshore Niger Delta blocks, 18 shallow-water assets, one deep offshore block and frontier basin acreage in the Benin, Anambra, Chad and Benue basins.

Eyesan said the assets have the potential to add about 500 million barrels to Nigeria’s proven crude reserves and help the country achieve its target of increasing oil production to three million barrels per day by 2030.

She explained that successful bidders were selected through a weighted assessment of signature bonus commitments, technical competence, financial capacity, work programmes, and performance guarantees.

The NUPRC boss added that preferred bidders must still fulfil post-award obligations, including payment of signature bonuses, first-year rentals, execution of contractual agreements, and provision of performance guarantees before Petroleum Prospecting Licences (PPLs) would be granted.

She warned that any successful bidder failing to satisfy the stipulated conditions within 90 days of receiving an offer letter would automatically forfeit the award, allowing the Commission to invite reserve bidders.

Eyesan reaffirmed the Commission’s commitment to transparent, competitive, and predictable licensing rounds, revealing that President Bola Tinubu had already approved the commencement of the 2026 Licensing Round.

Meanwhile, the Pan Niger Delta Forum (PANDEF) called on the Federal Government to reserve at least 60 per cent of oil blocks and marginal fields for companies owned by people of the Niger Delta.

In a statement signed by its National Spokesman, Chief Dr. Obiuwevbi Ominimini, the organisation argued that despite producing Nigeria’s oil wealth, communities in the region continue to bear the burden of environmental degradation, gas flaring, and underdevelopment.

The group also demanded greater transparency in the management of gas flare penalties, legal recognition of artisanal refining operations, and a forensic audit of previous oil block allocation exercises.

PANDEF maintained that allocating a greater share of petroleum assets to Niger Delta-owned companies would promote inclusion, deepen local participation, and ensure that host communities derive greater economic benefits from the resources extracted from their land.