The federal government has said the minimum financial requirement for an entity to participate in the 2025 licensing round is an average $100 million for deep offshore blocks, while an average $40 million is required for onshore and shallow water blocks.

This was contained in the “FAQ’s on the Nigerian Upstream Petroleum Regulatory Commission (NUPRC’s) 2025 Licensing Round.”

The document, which was released virtually on Monday, said, “Average annual turnover of USD$100,000,000.00 for deep offshore blocks and USD$40,000,000 for onshore and shallow water blocks or

“Minimum cash in the bank of USD$100,000,000.00 for deep offshore blocks and USD$40,000,000.00 for onshore and shallow water blocks, or bank guarantee to the tune of USD$100,000,000.00 for deep offshore, USD$40,000,000.00 for onshore, and shallow water blocks, or

“For newly incorporated companies, a parent company guarantee to the tune of USD$100,000,000.00 in deep offshore, USD$40,000,000.00 in onshore and shallow water.”

NUPRC also said that from the $10 million per block charge in the 2024 oil block bid round, the Federal Government has reduced the signature bonus to between a minimum of $3 million to a maximum of $7 million in the 2025 bid round.

This is an indication of a 70 per cent and 30 per cent crash, according to the document.

According to NUPRC, “The Nigerian government has graciously reduced the signature bonus to between $3 million and $7 million.”

The document noted that the Minister of Petroleum Resources has approved the new signature bonus to reduce entry barriers.

“All Bidders shall be required to submit a bid within a range of $3 million and $7 million as approved by the Minister of Petroleum for the reduction of entry barriers,” said NUPRC.

The document explicitly stated that the designated signature bonus account is United States dollar-denominated, an indication that it is not denominated in local currency (Naira).

NUPRC said the exercise is a score-based approach, taking into consideration the following parameters: Signature bonus (provided it is within the prescribed limit), and Work programme.

It also said the score-based approach considers unit cost per barrel with reference to the work programme, professionalism, human and technical capacity.

It also looks into the percentage of bank guarantee made available, Balance sheet, Turnover, Green story and decarbonisation programme, and corporate governance structure.

NUPRC said no bidder, whether participating individually or as a member of any consortium, shall submit applications for more than two assets in total across all applications.

It stressed that “participation in more than one consortium shall count towards this limit. For the avoidance of doubt, where a company has equity, direct or indirect ownership, or management involvement in multiple consortium vehicles, all such applications shall be aggregated and treated as a single bidder’s application.”

The document said the applicant’s Technical Competence will be evaluated using work experience across the under-listed work areas: Geological and geophysical capabilities; Drilling and well engineering; Reservoir evaluation and management; Production engineering and technology; Development planning and Facilities engineering and management. (The Nation)