Nigeria 2025 Bid Round-Key Clarifications From The NUPRC Pre-Bid Conferences

On 14 January 2026 and 28 January 2026, the Nigerian Upstream Petroleum Regulatory Commission ("NUPRC" or the "Commission") held the 2025 Pre-Bid Conference and Webinar respectively. These sessions focused on clarifying regulatory, commercial, and procedural issues. Our earlier newsletters, Part 1 and Part 2 highlighted key bid round developments and investor takeaways for the 2025 Bid Round.

These clarifications are particularly relevant for bidders and investors and, in several instances, go beyond points raised in our earlier newsletters. A summary of the key clarifications is below:

1. Assets on Offer: Geological Location and Terrain
   1. The bid round covers multiple assets across Nigeria's onshore, shallow water, and deep offshore terrain located in the Niger Delta Basin, Anambra Basin, Chad Basin, Benin Trough Basin, and Benin Basin.
      
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   2. Applicants may bid for a maximum of 2 assets, with each bid evaluated independently.
   3. Any bid submitted in excess of this limit shall be deemed invalid and disqualified.
      • Successful participation requires meeting pre-qualification standards across technical expertise, financial capability, and legal compliance to ensure timely and competent development of the assets.
      • Successful bidders will be awarded a Petroleum Prospecting Licence (PPL), with duration dependent on location of the asset allocated.
2. Data Availability and Categorisation
   1. The Commission confirmed that subsurface data availability differs materially across the assets on offer. Assets in mature basins benefit from established seismic and well datasets, while frontier basin assets may carry higher subsurface uncertainty due to limited or absent data coverage. This distinction has been disclosed upfront to enable investors to appropriately gauge geological, financial and commercial risks prior to structuring competitive bids.
   2. The available data packages may be accessed through the following approved sources:
      • National Data Repository (NDR): 2D/3D seismic data, well reports, technical studies, and analogue well data
      • TGS ASA (TGS): 3D seismic and Mega Survey data
      • TGS-PetroData Offshore Services Limited (TGS-PD): Awele 3D seismic, Multibeam and Seafloor Sampling (MBSS), and enhanced/reprocessed regional 2D seismic data.
   3. The representative from TGS noted that, for information regarding physical access to TGS' data room, applicants may contact TGS either through the Commission or directly via TGS Nigeria at: AME-Nig-lr2025-Sales@Tgs.com.
   4. Applicants may only source data from the sources mentioned above as applicants are prohibited from purchasing data from any third party. Violations will be penalized.
3. Eligibility criteria for Applicants
   1. Applicants (either foreign or local) must have been incorporated on or before 27 February 2026 to be eligible to apply in the bid round.
   2. The Commission confirmed that foreign entities are not required to establish a Nigeria subsidiary to participate but any successful foreign bidder must incorporate a Nigerian subsidiary within 90 days of receiving the offer letter, as a condition precedent to the award of the asset.
   3. Consortium bids are equally permitted, provided that:
      1. a valid consortium agreement is submitted;
      2. an authorised representative is appointed via Power of Attorney; and
      3. an operator is designated with a minimum 30% participating interest.
   4. In addition, a consortium may be formed after the pre-qualification stage but before the submission of a commercial bid, with other pre-qualified candidates, subject to the Commission's approval.
   5. For the consortium arrangement, modifications are allowed at any stage of the bid process, in so far that the consortium members can confirm that the new addition meets the 'Trio criteria'¹ set by the Commission, and such addition is approved by the Commission. Any changes that occur or is proposed post award, may constitute an assignment that will require the consent of the Minister of Petroleum Resources to be valid.
   6. The Commission clarified that, where any of the consortium members is in default and renders the operation of the asset impossible, the defaulting member's participating interest in the consortium will be revoked and redistributed among the remaining members.
4. Applicable Fees
   
   The Commission reiterated the applicable fees as set out below:
   
   1. A one-off fee of US$10,000 for expression of interest.
   2. A US$25,000 application and processing fee per bid submission for each asset.
   3. NDR Data Prying Fee (optional): US$ 10,000 per session, per asset for access to raw seismic or physical data, subject to data availability.
   4. A range of US$3 - US$7 million per asset for signature bonus that is payable in full within 60 days of the offer letter. While higher signature bonuses score favourably, awards will be based on overall bid strength.
   5. NDR, TGS and TGS-PD fees are subject to data availability and in line with the 3rd Schedule of the National Data Repository Regulations 2020.²
   6. 5% of the signature bonus per bid will be used as bid guarantee, and valid for 120 days after the Commercial Bid Conference (or such extended period as agreed). The issuing banks must be international or Nigerian banks with a minimum "BBB" credit rating.
5. Key Dates for the Bid Round³:
   
   An updated bid round schedule was released with minor adjustments made to the initial version. The planned international roadshow was not reflected in the updated schedule, however, the Commission confirmed that it will still be held, and further details of that will be communicated as developments arise.
6. Key Bid Parameters
   1. All winning bids will be determined based on a weighted average of technical and commercial scores, with particular emphasis on:
      • Signature Bonus
      • Proposed Work Programme Financial Commitments
      • Work Performance Security: The Commission confirmed that bidders are required to provide work programme security of not less than 1%, a significant reduction from the 100% minimum required in previous rounds and was intended to lower entry barriers and encourage more participation. It was, however, emphasised that work programme commitments remain fully binding and enforceable post-award, and that higher commitments, although capable of improving bid scores, carry corresponding higher execution and forfeiture risk.
   2. In an event where 2 or more bidders obtain identical scores on the evaluation of an asset, such bidders shall be subject to the tie-breaking process.
7. Post Award Obligations
   1. Successful bidders must meet all terms of the award, including:
      • Paying the signature bonus within 60 days of receiving their offer letter.
      • Signing the model contract before or at the time of signature-bonus payment.
      • Executing the licence/lease instrument and general conditions after ministerial approval.
      • Production bonuses must be paid within 30 days of achieving the specified production.
      • Successful bidders must also enter necessary commercial contracts.
      • Provide work programme performance security.
   2. The Commission further clarified that failure to meet the terms of the award may result in the reserve bidder being invited to fulfil the requirements.
8. Contractual Considerations
   1. At the bid submission stage, applicants are required to clearly state whether their bid is based on a concessionary arrangement or a production sharing contract (PSC) basis.
   2. All bids shall be evaluated strictly in accordance with the contractual arrangement declared.
   3. Where a concessionary arrangement is proposed, the Federal Government of Nigeria reserves a back-in right of up to 60%. Under a PSC arrangement, Nigerian National Petroleum Company Limited shall act as the concessionaire, with the successful bidder serving as the contractor in this instance.
9. Targeted Fiscal Incentives
   1. The Commission emphasised that fiscal incentives under the 2025 Licensing Round are targeted, not blanket concessions, and are designed to support capital and technical deployment in priority upstream segments. In particular, incentives are mainly focused on:
      • greenfield developments, particularly new, non-associated gas projects;
      • deepwater oil and gas projects, in recognition of the higher capital requirement and longer development timelines; and
      • cost efficiency and operational performance, with measures intended to encourage efficient project execution.

Footnotes

1 The legal, financial and technical criteria.

2 Note: The 2024 National Data Repository Regulations is in draft form and awaiting official gazettement.

3 The NUPRC may change any of the above dates.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.