‘Drill Or Drop’ – 31 Firms Win 37 Oil Blocks As CEPRSD Praises NUPRC

The Centre for Energy Policy, Research and Strategic Development (CEPRSD) has commended the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) over what it described as the transparent and professional conduct of the 2025 oil and gas licensing round.

The organisation said the emergence of 31 successful companies for 37 oil and gas blocks reflected growing investor confidence in Nigeria’s upstream petroleum sector.

In a statement on Sunday, the Executive Director of CEPRSD, Dr Cletus Okpe, praised the Chief Executive Officer of the NUPRC, Oritsemeyiwa Eyesan, for what he described as disciplined management of the bidding process.

According to him, the participation recorded during the exercise showed that investors were willing to commit capital to Nigeria when regulatory procedures were transparent and predictable.

Okpe said 143 companies participated in the licensing exercise, submitting 200 bids for 37 assets.

Of the 50 blocks offered by the commission, 37 attracted bids while 13 received none.

“The latest licensing round provides a strong indication of what is possible when the allocation of national petroleum assets is managed through a transparent, structured and competitive process,” he said.

“The participation of 143 companies, which submitted 200 bids for 37 assets, shows that investors are willing to commit resources to Nigeria when they have confidence in the rules, evaluation process and regulatory environment.”

The successful bids were spread across established petroleum-producing regions and frontier basins, including the Benue Trough, Chad Basin, Anambra Basin and Benin Basin.

Okpe said investor interest in the frontier areas was particularly encouraging because they had historically attracted less investment than traditional oil-producing regions.

CEPRSD also praised the commission for insisting that successful bidders meet their financial obligations before receiving final awards.

Okpe said the requirement would help prevent companies from acquiring petroleum assets merely for speculative purposes.

“Financial discipline is critical to the success of any licensing exercise,” he said.

“It is not enough for companies to win blocks; they must demonstrate that they have the capacity and willingness to pay the required signature bonuses, execute their work programmes and move the assets towards production.”

He argued that the approach would protect government revenue and reduce the likelihood of valuable acreage remaining undeveloped.

The organisation also backed the NUPRC’s application of the “drill or drop” principle.

Okpe described the policy as an important accountability mechanism that would ensure companies either develop their allocated assets or relinquish them.

According to him, the approach would help distinguish serious investors from operators interested only in holding acreage without meaningful exploration or development.

The Centre further commended the participation of the Federal Ministry of Petroleum Resources, Federal Ministry of Finance and the Nigeria Extractive Industries Transparency Initiative in monitoring the commercial bid conference.

Okpe said the involvement of multiple institutions strengthened public confidence in the process.

He added that effective oversight was essential to maintaining the integrity of petroleum asset allocation.

CEPRSD said the licensing round could attract new investment, increase reserves, create jobs and boost government revenue if successful bidders fulfilled their obligations.

“What Nigeria needs now is for the credibility achieved during the bidding process to continue through the post-award stage,” Okpe said.

“Successful companies must translate their awards into capital deployment, exploration, development and production.”

He urged the NUPRC to enforce performance obligations consistently and maintain predictable licensing rounds to provide investors with a clearer pipeline of opportunities.

“The stewardship displayed by Mrs Eyesan deserves recognition because transparency in resource allocation is inseparable from public trust,” Okpe added.