FG Reduces Signature Bonus for 2025 Oil Licensing Round

The Nigerian government has lowered the signature bonus for the 2025 petroleum licensing round to a range of $3 million to $7 million. The measure aims to reduce entry barriers for companies bidding for exploration and production licenses or leases across various onshore and offshore blocks.

Bidders are required to submit proposals within the approved range, with submissions evaluated based on a range of criteria, including proposed work programs, cost per barrel, technical capacity, bank guarantees, turnover, environmental commitments, and corporate governance standards.

The licensing round includes 50 oil and gas blocks spanning frontier basins, shallow waters, deepwater areas, and onshore territories. The government projects that this round could attract up to $10 billion in investments, potentially adding two billion barrels to national oil reserves over the next decade and boosting daily production by an estimated 400,000 barrels. The Nigerian Upstream Petroleum Regulatory Commission has introduced a digital bidding portal to streamline the process and enhance transparency, reflecting ongoing efforts to strengthen the country’s upstream sector.