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

The centre particularly praised NUPRC Chief Executive Officer, Oritsemeyiwa Eyesan, for the commission’s handling of the process, saying the emergence of 31 successful companies for 37 oil and gas blocks demonstrated continued investor interest in Nigeria’s upstream sector.

In a statement, Executive Director of CEPRSD, Dr Cletus Okpe, said the participation recorded during the licensing exercise showed that investors remained willing to commit capital to Nigeria’s petroleum industry when regulatory processes were clear and predictable.

According to him, 143 companies submitted 200 bids for 37 of the 50 blocks offered by the commission, while 13 blocks attracted no bids.

Okpe said the geographical spread of the blocks that attracted bids was particularly significant, noting that they covered both established petroleum-producing areas and frontier basins, including the Benue Trough, Chad Basin, Anambra Basin and Benin Basin.

“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,” he said.

He said interest in frontier basins was encouraging given their historically lower levels of investment compared with established producing areas.

Okpe attributed the outcome partly to the professional conduct of the licensing process under the leadership of Eyesan, saying the commercial stage was conducted within a defined regulatory framework.

He also welcomed the commission’s emphasis on financial discipline, particularly requirements for successful bidders to meet their financial obligations before receiving final awards.

According to him, ensuring that successful bidders demonstrate the financial capacity to develop their assets would reduce the risk of speculative acquisition and prevent valuable petroleum acreage from remaining idle.

“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,” he said.

Okpe also commended NUPRC’s application of the “drill or drop” principle, describing it as an important mechanism for holding operators accountable for the development of awarded acreage.

He said the principle could help distinguish between investors committed to developing Nigeria’s hydrocarbon resources and those seeking to retain acreage without meaningful exploration or development activity.

CEPRSD further praised the participation of 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 involvement of the various institutions strengthened confidence in the licensing process and underscored the importance of oversight in the management of Nigeria’s petroleum resources.

He said the licensing round could support increased upstream investment, reserve growth, employment and government revenue if successful bidders fulfilled their obligations.

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

“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.”

Okpe urged the commission to maintain what CEPRSD described as transparency and predictability in future licensing exercises, arguing that regular and credible rounds would give investors greater certainty over opportunities in Nigeria’s upstream sector.

He said the licensing process demonstrated how Nigeria could balance the need to attract investment with its responsibility to ensure that public petroleum resources were properly managed.

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

He added that sustained regulatory discipline, financial accountability and effective enforcement would be critical to ensuring that Nigeria derives measurable economic value from its petroleum resources.