Africa’s largest oil producer puts 40 oil and gas blocks on offer as it demands disclosure of bidders’ real owners

What exactly has Nigeria’s upstream regulator announced by putting 40 oil and gas blocks on offer in the 2026 licensing round?

The NUPRC has announced a 2026 licensing round offering 40 oil and gas blocks to potential investors. These blocks are upstream areas where companies may seek rights to explore for and produce hydrocarbons. The round matters because Nigeria is trying to increase output and bring more investment into its oil sector.

The process is not only about selecting companies. The regulator is also demanding disclosure of each bidder’s real owners. That requirement is intended to show who ultimately controls or benefits from a bidding company. It can make the process more transparent and help authorities assess bidders properly.

The announcement comes as production has risen to 1.8 million barrels per day, while 788,000 barrels per day remains described as shut-in crude targeted for recovery. The round is therefore part of a wider push to boost output. Its results will depend on whether successful bidders actually develop their awarded blocks.

What is an oil and gas block, and why is it offered to companies through a licensing round?

An oil and gas block is a defined area of land or seabed containing possible petroleum resources. A block does not automatically guarantee a discovery or production. It gives a company a place where it may conduct approved exploration and, if commercial resources are found, develop them under an oil licence.

Governments offer blocks through licensing rounds to compare companies and allocate rights in an organised process. Bidders may be assessed on their technical ability, financial strength, work plans, and compliance. Nigeria’s 2026 round puts 40 such blocks on offer. The NUPRC is also seeking disclosure of bidders’ real owners.

The goal is to turn potential underground resources into investment, production, government revenue, and energy supply. The award alone is not enough. Companies must carry out their commitments. Nigeria’s drill-or-drop policy shows the consequence of delay: fields can be retrieved from awardees that fail to develop them.

How much oil is Nigeria producing now, and how much additional crude is described as ‘shut-in’ and potentially recoverable?

The figures show both Nigeria’s current production and its potential near-term opportunity. Production has risen to 1.8 million barrels per day, according to the statement attributed to Ojulari. At the same time, the NUPRC is targeting 788,000 barrels per day of shut-in crude for recovery.

“Shut-in” crude refers to production that is currently stopped or unavailable, even though it is associated with oil fields or operations. Recovering it means restoring output from those existing sources. That can be different from finding entirely new reserves, because the target is already linked to identified production capacity.

Together, the numbers explain why the regulator is pursuing several measures. The 2026 round offers 40 oil and gas blocks for new investment, while recovery efforts focus on shut-in production. Nigeria’s output could rise further if shut-in barrels return and new awardees develop their blocks successfully.

What is the NUPRC, and what role does it play in awarding and supervising Nigeria’s oil and gas rights?

NUPRC stands for the Nigerian Upstream Petroleum Regulatory Commission. It is the government body responsible for regulating Nigeria’s upstream oil and gas activities. Upstream work includes finding petroleum, developing fields, and producing crude and gas. Its decisions therefore shape who can access resources and how those resources are managed.

In the announced 2026 round, NUPRC is offering 40 oil and gas blocks. It sets the licensing process and is demanding that bidders disclose their real owners. The regulator also tracks production, including its target of recovering 788,000 barrels per day of shut-in crude. These actions connect licensing with oversight.

Supervision continues after an award. Companies are expected to develop the fields they receive, rather than hold them indefinitely. The federal government’s retrieval of 50 oil fields from defaulting awardees reflects that enforcement role. NUPRC’s broader stated plan is to help boost production while making upstream rights more accountable.

What does it mean to disclose a bidder’s ‘real owners,’ and why is that information important in an oil licensing process?

Disclosing a bidder’s real owners means identifying the people or entities that ultimately control the company or receive its benefits. The legal bidder may be a registered company, but its ownership can be layered through other companies. Naming the ultimate owners makes the bidding structure easier to understand.

Nigeria’s upstream regulator is demanding this information as it offers 40 oil and gas blocks in the 2026 licensing round. The requirement can help officials check who is seeking valuable upstream rights. It also gives the public and other participants clearer information about the interests behind each bid.

Ownership disclosure matters because licensing decisions affect access to national oil and gas resources. It can support accountability and reduce the risk of hidden conflicts or unsuitable participants. The source does not state how Nigeria will publish or verify the information. It does show that transparency is being made part of the announced bidding process.

What is the ‘drill-or-drop’ policy, and what can happen to companies that receive oil fields but fail to develop them?

The drill-or-drop policy gives companies a clear choice after receiving oil fields: carry out the required development work or surrender the rights. It is meant to stop valuable acreage from being held without drilling or production. The policy links ownership of an award to actual performance.

Nigeria’s federal government has retrieved 50 oil fields from defaulting awardees. This is the concrete enforcement example behind the policy. A company that receives a field but does not meet its obligations can lose access to it. The field can then potentially be reassigned through a later process.

The policy matters for production because undeveloped awards do not deliver crude, investment, or revenue. It also affects the 2026 licensing round, where 40 blocks are being offered. Future awardees will face pressure to move from winning rights to carrying out work. The source does not specify individual deadlines or penalties beyond field retrieval.

How do oil licensing rights ultimately lead to exploration, production, government revenue, and energy supply?

Oil licensing is the chain that connects underground resources with economic activity. Government offers defined blocks, companies bid for rights, and successful awardees receive permission to explore under agreed conditions. Exploration may identify commercial resources. Development then creates wells and facilities that can produce crude or gas for sale and use.

The mechanism depends on performance. Nigeria’s 2026 round offers 40 blocks, while the government’s drill-or-drop policy requires awardees to develop their fields. Companies that default can lose their awards; the government has retrieved 50 oil fields from defaulting recipients. Production can also rise when shut-in operations are restored.

The benefits extend beyond the operator. Producing fields can support government revenue and energy supply, while higher output can strengthen the wider oil sector. Nigeria is currently producing 1.8 million barrels per day and targeting 788,000 barrels per day of shut-in crude. Future results depend on investment, development, and enforcement.

Key Facts:

📌 NUPRC announced a 2026 licensing round for 40 oil and gas blocks.

📌 Bidders must disclose their real owners.

📌 The licensing plans aim to boost Nigeria’s oil production.

📌 A block is a defined area with possible oil and gas resources.

📌 Licensing rounds allocate exploration and production rights.

📌 Nigeria offered 40 blocks in its 2026 round.

📌 Nigeria’s oil production has risen to 1.8 million barrels daily.