NUPRC 2026 Oil Licencing Round: Expert Advocates Disciplined Approach

As Nigeria prepares for the upcoming 2026 Licensing Round, spearheaded by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), oil and gas expert Leesi Gabriel Gborogbosi is urging prospective bidders to adopt a strategic and disciplined approach. The NUPRC has announced that the bidding process will commence in the third quarter, following the conclusion of the 2025 round, a move interpreted as a sign of growing investor confidence in the nation's upstream sector.

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a disciplined, long-term approach to investment and risk management

Gborogbosi, who brings nearly three decades of industry experience, including roles at Shell Nigeria and as CEO of Gabriel Domale Consulting, emphasized that acquiring licenses should be viewed as a comprehensive investment program, not just a transactional step. He advised bidders to meticulously study the Petroleum Industry Act 2021, Nigeria Tax Act 2025, and all relevant licensing guidelines. Understanding the upstream commercial landscape and potential "hidden asset risks" is crucial before committing capital, he stated.

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reflecting renewed investor confidence in Nigeria’s upstream sector

The expert highlighted that the licensing process involves multiple stages, from registration and pre-qualification to technical submissions and commercial negotiations, each carrying distinct financial implications. Gborogbosi specifically warned about the complexities associated with marginal and brownfield assets, which often present technical, historical, and community-related challenges. These can necessitate significant infrastructure rehabilitation and require immediate social investment from host communities, especially after periods of inactivity.

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as a complete investment programme

Furthermore, Gborogbosi stressed the importance of a robust cost and funding strategy, encompassing pre-licence "search costs" often denominated in foreign exchange, signature bonuses, and life-cycle expenditures. He advocated for blended financing options beyond traditional bank debt, including equity, farm-ins, technical partnerships, and reserves-based lending. Successful operation, he asserted, depends not solely on the acquisition cost but on the sustained ability to operate assets efficiently and maintain profitable production, while also considering factors like community engagement and contributions to energy security and local content.

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hidden asset risks