Nigeria has launched a tender for 50 oil and gas blocks, aiming to attract $10 billion in new investment over the next decade and boost national production by 400,000 barrels per day, signaling a major push to strengthen the country’s energy sector.
Extensive Oil and Gas Portfolio
The West African country has a large number of oil fields and blocks, both onshore and offshore, and is one of the continent’s leading producers and distributors, with prominent private players such as Dangote and Atlas Oranto Petroleum.
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) plans to auction a total of 220 blocks, including undeveloped ones, in a bid to boost production and attract investment.
As part of this effort, the latest 2025 licensing round features 50 blocks, which include 15 offshore deposits, 19 frontier fields, and one deepwater block.
Notably, most blocks in Nigeria are held under Production Sharing Contracts (PSCs) or Oil Mining Leases (OMLs). Some are operated by private Nigerian companies, while others are managed in partnership with international majors.
Although countries like Libya and Angola have larger proven reserves, Nigeria stands out for its high number of distinct fields, making it especially attractive for smaller private players to acquire and operate multiple blocks.
Investor Confidence and Data Upgrades
According to Gbenga Komolafe, head of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), “The Commission understands that in today’s volatile global energy landscape, certainty and predictability have become the true currencies of investment.”
He added, “Through extensive multi-client surveys, the NUPRC has reprocessed thousands of kilometres of 2D and 3D seismic data, producing sharper, higher-resolution images of our petroleum systems and reducing uncertainties that once hindered exploration decisions.”
The 2025 Licensing Round is intended to deepen exploration, expand reserves, increase government revenue, and create thousands of jobs.
In addition, it seeks to broaden gas utilisation, strengthen indigenous participation, and enhance transparency in line with Extractive Industries Transparency Initiative (EITI) standards.
Production Growth and Major Investments
Since the start of 2025, 46 field development plans have been approved, the active rig count has exceeded 60, and crude output has climbed to 1.71 million barrels per day, peaking at 1.83 million.
Recent final investment decisions, including $5 billion for Bonga North, $500 million for Ubeta Gas, and $2 billion for Shell’s HI Gas project, highlight renewed investor confidence.
International Oil Majors Expand Presence
Global energy companies are increasing stakes in Nigeria. Shell recently acquired an additional 10% in the OML 118 deepwater Bonga field, raising its share from 55% to 65%.
TotalEnergies sold a 40% stake in two offshore exploration licenses to Chevron while remaining operator, a move intended to derisk projects and open new development opportunities.
Efforts to De-Risk Exploration
To attract investors, the government has lowered signature bonuses and implemented measures to reduce exploration risks.
Komolafe said these steps, combined with higher-quality seismic data, will improve discovery chances, shorten appraisal timelines, reduce entry costs, and accelerate the path from licensing to first oil or gas production.
