The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) officially announced the commencement of its 2025 oil block licensing round, set to become effective from December 1, 2025. This significant declaration was made by NUPRC's Chief Executive Officer (CEO), Gbenga Komolafe, at the commission's 'Project One Million Barrels Per Day (1MMBOPD) Additional Production Investment Forum' held in London on Tuesday. Mr. Komolafe emphasized that this strategic move aligns precisely with the provisions of the Petroleum Industry Act (PIA 2021) and follows the explicit approval granted by President Bola Tinubu, who also serves as Nigeria’s Minister of Petroleum Resources.

A licensing round is a critical process through which governments grant exploration and production rights for oil and gas to various companies via a competitive bidding system. Komolafe reiterated, "We are announcing that we are ready, following the approval of the Minister of Petroleum Resources in line with the PIA to commence the 2025 licensing round beginning from December 1, 2025."

During the forum, which gathered chief executive officers of major oil companies, representatives from leading banks, and potential investors, Mr. Komolafe identified funding as the most substantial impediment within Nigeria’s upstream petroleum sector. He articulated NUPRC’s proactive role as a business enabler, committed to surmounting these financial bottlenecks by fostering connections and collaboration among all interested parties. He noted that historically, business activities often occurred in isolated silos, but NUPRC now recognizes the imperative to unify stakeholders to achieve the ambitious goal of an additional one million barrels per day in production. This event was specifically organized to facilitate networking and stakeholder engagement.

Komolafe underscored that this period represents an opportune moment for existing investors to deepen their involvement in Nigeria. To reach and sustain one million barrels per day in incremental capacity and beyond, substantial investments will be required in critical infrastructure. This includes Floating Production, Storage and Offloading (FPSO) units for cluster developments, Floating Storage and Offloading (FSO) vessels for crude evacuation and storage, and a variety of Modular Offshore Production Units (MOPU) and Early Production Facilities (EPF) designed to enable early production and accelerate monetization. He affirmed, "All these need investments and the prospects are here in Nigeria."

Legislative leaders also provided strong assurances to investors. Alhassan Ado Doguwa, Chairperson of the House Committee on Petroleum Resources (Upstream), pledged that his committee would steadfastly avoid any legislation that could undermine investments. He reaffirmed the House of Representatives' unwavering commitment to the PIA, promising to resist any arbitrary changes to the Act. Similarly, Senator Eteng Williams, his counterpart in the Senate, guaranteed investors that Nigeria's legislature would continue to pass business-friendly laws, encouraging confidence in the investment climate.

Komolafe further highlighted tangible progress resulting from the reforms initiated by President Tinubu’s administration. He reported that Nigeria’s crude production now averages 1.71 million barrels per day (mbpd), with a peak daily output reaching 1.83 mbpd. Since January 2025, NUPRC has approved 46 Field Development Plans (FDPs), signifying immediate investment commitments and substantial production growth potential. The rig count has also seen significant growth, surpassing 60, with at least 40 rigs currently active. The 2025 licensing round will specifically focus on undeveloped fields, complementing earlier warnings from Heineken Lokpobiri, the Minister of State for Petroleum Resources (Oil), regarding the non-renewal of oil licenses held by firms without visible exploration activities.