- The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has announced plans to license 220 open oil blocks located across Nigeria
- The Commission said the blocks will be sold to successful investors once the bidding process begins
- The move aims at unlocking Nigeria’s underutilised hydrocarbon potential amid economic strain
Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has announced plans to license 220 open oil blocks located across Nigeria’s various onshore and offshore basins.
These long-dormant blocks are not abandoned but are awaiting concession through periodic licensing bid rounds, in line with Section 7(t) of the Petroleum Industry Act (PIA) 2021.
Credit: Novatis
Source: Getty Images
Deep offshore holds untapped wealth
According to the Commission, the blocks will be handed over to successful investors once the formal bidding process begins and the stipulated conditions are fulfilled.
The move is aimed at unlocking Nigeria’s underutilised hydrocarbon potential amid economic strain, dwindling crude output, and refinery challenges.
NUPRC data indicate that Nigeria’s deep offshore terrain contains the highest number of unlicensed blocks, totalling 59.
According to a Punch report, these deepwater areas, while rich in hydrocarbon resources, are costly and complex to explore due to technological and infrastructure demands.
The Benue Trough follows closely with 41 open blocks, and the Chad Basin holds 40. Other regions with significant unlicensed assets include the Sokoto Basin (28), Bida Basin (16), Anambra Basin (13), and the offshore and onshore Niger Delta, which still have several dormant blocks despite being historically prolific in oil production.
Transparency and legal backing drive licensing process
In its recent statement, the Commission clarified that the publication of 243 oil block concession statuses was done in the spirit of transparency, a key mandate under the Petroleum Industry Act.
The NUPRC emphasised that the licensing strategy will be guided by legal provisions, aiming to attract both local and international investors into Nigeria’s upstream oil sector.
The agency also referenced the ongoing preparations for the 2025 bid round, which was announced in December 2024 but has yet to commence.
The new licensing efforts are expected to draw significant interest, particularly in light of global demand for new energy sources and Nigeria’s need for economic revitalisation.
High potential, low output: Nigeria’s oil paradox
Despite its vast oil wealth, Nigeria faces a striking mismatch between its petroleum potential and its actual production capacity.
As of January 1, 2025, deepwater terrain contributed about 19% of the country’s oil reserves and 12% of its gas reserves. However, many of these reserves remain untapped due to high exploration costs, insecurity, and limited infrastructure.
Experts say these dormant oil blocks could play a key role in reversing the country’s reliance on debt and petroleum imports.
Nigeria’s debt stock hit N149 trillion in Q1 2025, while domestic refineries continue to operate below capacity due to insufficient crude supply.
A previous report by Legit.ng disclosed that Nigeria’s oil output hit 1.8 million barrels per day in June, up from 1.6 million barrels recorded in May.
The new milestone inches closer to Nigeria’s target of 2mbd set by the Nigerian government, and helps to bolster revenue.
Credit: Bloomberg/Contributor
Source: Getty Images
Conclusion: A race to revive Nigeria’s oil economy
The licensing of 220 oil blocks is a pivotal step in Nigeria’s push to harness its full oil potential, reduce borrowing, and boost local refining capacity.
With proper execution, the move could attract fresh investments, increase crude output, and help stabilise the economy in the long term.
Delta state leads oil production in Nigeria
Legit.ng earlier reported that Delta state has cemented its place as Nigeria’s most productive oil state, according to fresh data from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).
Covering the period from November 2023 to September 2024, the report shows that Delta alone produced a staggering 99.9 million barrels of crude oil and condensate, the highest output by any state during the period.
This volume represents more than one-third of Nigeria’s total attributed production of 295.34 million barrels.
PAY ATTENTION: Сheck out news that is picked exactly for YOU ➡️ find the “Recommended for you” block on the home page and enjoy!
Source: Legit.ng
