Nigeria Opens 2026 Oil Licensing Round, Offers 40 Blocks as Production Rises to 1.82 Million Barrels Per Day

The Federal Government, through the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), has announced the 2026 Nigerian oil licensing round, offering 40 oil blocks across land, shallow water and deepwater terrains as Nigeria intensifies efforts to attract new investment into the upstream petroleum sector.

The announcement came as the Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, disclosed that Nigeria's crude oil and condensate production had increased to 1.82 million barrels per day.

According to the minister, the figure represents an increase of more than 80 percent from the level recorded when the President Bola Tinubu-led administration assumed office in 2023.

Lokpobiri disclosed the production figure on Tuesday in Abuja, saying the latest data submitted to his office on Monday showed that increased drilling activity was contributing to the growth.

He said more than 73 drilling rigs are currently active in the country.

NUPRC Approves 120 Field Development Plans

The production increase comes as the NUPRC continues to approve new development projects in Nigeria's upstream sector.

According to NUPRC Chief Executive, Oritsemeyiwa Eyesan, the commission has approved 120 Field Development Plans since 2024, representing approximately $47.6 billion in capital commitments.

The projects are expected to add about 1.74 million barrels of oil and 13.9 billion standard cubic feet of gas per day to Nigeria's production capacity when fully developed.

Eyesan disclosed the figures during her closing remarks at the fifth anniversary celebration of the NUPRC in Abuja.

40 Oil Blocks Open to Investors

Announcing the 2026 licensing round, Eyesan said the exercise had received approval from President Bola Tinubu and the Minister of Petroleum Resources.

She said the round would offer 40 blocks across land, shallow water and deepwater terrains to investors with the required technical expertise, financial capacity and commitment to developing Nigeria's petroleum resources.

According to the NUPRC boss, the licensing exercise is intended to provide investors with a more transparent and predictable process for acquiring petroleum acreage.

She said competition for upstream investment was increasing globally, making clear rules, predictable processes and reliable technical data increasingly important to investors.

Beneficial Ownership Disclosure Required

One of the changes expected in the 2026 licensing round is a stronger disclosure requirement for participating companies.

The NUPRC said the new guidelines would require beneficial owners of every bidder to be disclosed.

The commission also plans to provide greater detail on its evaluation methodology and publish the results of the licensing exercise more fully.

The measures follow recommendations from the Nigeria Extractive Industries Transparency Initiative (NEITI) concerning previous licensing rounds.

Eyesan said NEITI's review of the 2022–2024 licensing exercises found the process to be generally professional, transparent and inclusive, while identifying areas where improvements could be made.

NUPRC Promises Predictable Licensing Process

The commission said the lessons from previous licensing exercises would be incorporated into the 2026 round.

According to Eyesan, the guidelines will clearly outline the evaluation methodology, qualification requirements, bidding parameters and conditions for the award of licences.

The NUPRC also plans to publish the bidding timetable at the beginning of the exercise and maintain the announced schedule.

Prospective investors are expected to have access to the licensing website and portal, virtual data room, webinars and a dedicated help desk.

The commission said any material clarification provided to one participant would also be communicated to other participants to ensure that bidders have access to the same information.

2025 Licensing Round Attracted 200 Bids

The 2026 exercise follows the conclusion of the 2025 Nigerian licensing round, which attracted substantial interest from local and international oil companies.

According to the NUPRC, 143 companies submitted 200 bids, while 31 companies emerged as winners of 37 blocks.

The commission said the 2025 exercise also generated interest in frontier basins outside the traditional Niger Delta producing areas.

Among the areas that attracted investor interest were the Anambra Basin, Benue Trough, Chad Basin and Benin Basin.

Since the Petroleum Industry Act came into force in 2021, the NUPRC said it has conducted three licensing exercises: the 2022 Deep Offshore Mini Bid Round, the 2024 Nigerian Licensing Round and the 2025 Nigerian Licensing Round.

These exercises resulted in the award of 57 Petroleum Prospecting Licences, according to the commission.

Previous Oil Blocks Expected to Boost Production

The NUPRC said assets offered in previous licensing exercises could significantly increase Nigeria's oil and gas production if successfully developed.

According to Eyesan, the assets could contribute approximately 500 million barrels of reserves and at least 300,000 barrels per day of crude oil and condensate production within five years.

The expected increase would contribute to Nigeria's broader production target of three million barrels per day by 2030.

The assets are also expected to contribute approximately 20 trillion cubic feet of gas reserves and 50 million standard cubic feet of gas per day in production, supporting the Federal Government's Decade of Gas initiative.

NUPRC Warns Successful Bidders: “Drill or Drop”

Eyesan warned prospective successful bidders that securing a petroleum licence would come with an obligation to develop the awarded assets.

She described a licence as a commitment to Nigeria rather than an asset to be held without development.

The NUPRC boss used the phrase “Drill or Drop” to emphasise the commission's expectation that successful investors should move from securing acreage to actual exploration and development.

Details of 2026 Licensing Round to Be Published

The NUPRC said full details of the 40 blocks, qualification requirements and participation procedures would be published on its website and dedicated licensing portal.

The commission also urged Nigerian and international investors with the required technical and financial capacity to participate in the exercise.

The 2026 licensing round comes as Nigeria seeks to attract additional upstream investment, increase oil and gas production and create a more transparent and predictable framework for the award and development of petroleum assets.

The outcome of the exercise will be closely watched as the country seeks to translate newly awarded acreage into actual exploration, development, reserves and production.