NUPRC: Only Successful Foreign Oil Field Bidders Must Establish Nigerian Entities
By Naija Enquirer Staff
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has clarified that international energy companies participating in Nigeria’s 2025 oil and gas licensing round will not be required to establish Nigerian subsidiaries before submitting bids.
However, the Commission stressed that only successful foreign bidders will be mandated to incorporate Nigerian entities within 90 days of receiving their offer letters.
The clarification comes as Nigeria intensifies efforts to attract foreign investment into its upstream sector, offering 50 exploration blocks across both mature and frontier basins, while still maintaining strong local participation requirements.
No Upfront Local Subsidiary Required For Bidding
According to details released following the pre-bid conferences held in January, the Commission stated that foreign entities can freely enter the bidding process without immediate incorporation in Nigeria.
“The Commission confirmed that foreign entities are not required to establish a Nigerian 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,” the NUPRC said.
This move is expected to encourage wider participation by reducing the cost burden and administrative hurdles often associated with early-stage investment decisions.
Policy Balances Investment Attraction With Commitment
Industry observers say the new arrangement allows companies to compete without the upfront financial commitment of setting up local structures, while ensuring that those awarded assets demonstrate genuine intent to operate and invest in Nigeria.
Under the policy, successful bidders must meet the incorporation requirement before final licence awards are issued, making local registration a key condition for securing exploration rights.
Licensing Round Covers Niger Delta And Frontier Basins
The NUPRC licensing round includes 35 blocks in the Niger Delta basin, which remains Nigeria’s most prolific oil-producing region.
The Niger Delta blocks include:
- 16 onshore blocks
- 18 shallow water blocks
- 1 deepwater prospect
In addition, the Commission is offering 15 blocks in frontier basins, including the Benin, Anambra, Benue, and Chad basins.
These frontier opportunities are considered higher-risk exploration prospects due to limited geological data, but they also hold long-term potential for expanding Nigeria’s oil and gas reserves.
Nigeria Pushes For More Exploration Investment
The 2025 licensing round forms part of Nigeria’s broader plan to boost upstream investment, expand reserve replacement, and strengthen production sustainability amid rising competition for global energy capital.
With the new bidding rules, stakeholders believe Nigeria is signaling openness to foreign investors while ensuring that successful operators contribute directly to the local economy through incorporated Nigerian business structures.
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