Centre commends Eyesan over transparent conduct of NUPRC licensing round

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

The Executive Director of CEPRSD, Dr Cletus Okpe, gave the commendation in a statement on Sunday, saying the emergence of 31 successful companies for 37 oil and gas blocks demonstrated the credibility of the bidding process and growing investor interest in Nigeria’s upstream sector.

According to him, the outcome was particularly significant because the 37 blocks that attracted bids were spread across established petroleum-producing areas and frontier basins, including the Benue Trough, Chad Basin, Anambra Basin and Benin Basin.

Okpe said the level of participation demonstrated that transparent and predictable regulatory processes could help restore investor confidence in Nigeria’s petroleum industry.

“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.

“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,” he said.

He said 37 of the 50 blocks offered by the commission attracted bids, while the remaining 13 received no bids.

Okpe described the spread of successful bids across different terrains as a significant development, particularly the interest generated in frontier basins that have historically attracted less investment than established oil-producing regions.

He attributed the successful conduct of the exercise to the leadership of Eyesan, saying the NUPRC maintained a professional approach throughout the process and ensured that the commercial stage was conducted within a clearly defined regulatory framework.

The CEPRSD executive director also commended the commission’s emphasis on financial discipline, saying the requirement for successful bidders to meet their financial obligations before receiving final awards would help prevent speculative acquisition of petroleum assets.

He said the measure was necessary to ensure that companies granted access to Nigeria’s petroleum resources possessed the financial capacity and commitment to develop them.

“Financial discipline is critical to the success of any licensing exercise. 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.

“The insistence on these obligations protects government revenue and ensures that valuable acreage does not remain idle in the hands of speculative investors,” he said.

Okpe also praised the commission’s application of the “drill or drop” principle, describing it as an important mechanism for enforcing accountability among operators.

He said the policy would help the government distinguish between investors committed to developing Nigeria’s hydrocarbon resources and those seeking to hold acreage without meaningful activity.

The centre further commended the involvement of relevant government institutions and stakeholders, including the Federal Ministry of Petroleum Resources, Federal Ministry of Finance and the Nigeria Extractive Industries Transparency Initiative (NEITI), in monitoring the commercial bid conference.

Okpe said the participation of the institutions strengthened confidence in the integrity of the process and underscored the importance of independent oversight in the management of Nigeria’s petroleum resources.

He said the licensing round had the potential to deepen investment in the upstream sector, support reserve growth, create jobs and increase government revenue if the successful bidders fulfilled their commitments.

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

“Successful companies must translate their awards into capital deployment, exploration, development and production. The NUPRC must equally sustain its regulatory discipline by enforcing performance obligations without fear or favour,” he said.

Okpe urged Eyesan and her team to maintain the transparency and predictability demonstrated during the licensing exercise, saying regular and credible licensing rounds would provide investors with a clearer pipeline of opportunities.

The oil and gas expert said the exercise offered a model for how Nigeria could balance investor confidence with its responsibility to protect public resources.

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

“If this level of professionalism, financial discipline and accountability is sustained, the NUPRC will not only attract credible investment but also ensure that Nigeria derives measurable economic value from its petroleum resources,” Okpe added.