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The Society of Petroleum Engineers (SPE) has defended the return of 13 oil blocks from Nigeria’s recently concluded 2025 Licensing Round by prospective bidders, saying the development should not be viewed as a failure of the bidding process but rather as a reflection of the commercial realities that shape upstream investments.
The Chairman of the SPE Nigeria Council, Mr Francis Nwaochei, stated this at the pre-event press conference for the 49th Nigeria Annual International Conference and Exhibition (NAICE 2026) in Lagos on Tuesday. The conference is themed: “Thriving in the Evolving Global Energy Landscape: Collaborative Growth and Resilience”.
Nwaochei said the country’s latest licensing round was conducted with a higher level of transparency than previous exercises and attracted significant investor interest.
Speaking on the return of the 13 oil blocks to the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Nwaochei explained that several commercial and financial factors could prevent successful bidders from completing the acquisition process.
“I would say the transparency level was much higher than what we had seen in previous licensing rounds,” he said.
According to him, companies bidding for oil blocks often operate within investment consortia whose decisions are influenced by financing availability, commercial viability and evolving market conditions.
“When companies submit bids, they are making investment decisions involving huge amounts of money. After the bidding process, circumstances can change. Funding may no longer be available, consortium partners may change their positions, or environmental, social and governance (ESG) considerations may affect financing decisions.
These are some of the realities that investors have to contend with,” he explained.
Nwaochei stressed that such developments should not be interpreted as shortcomings on the part of the regulator.
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“I don’t think it is a failure. It is simply how the investment process works. There are several factors that must align before companies can complete transactions of this nature,” he said.
He noted that under the licensing framework, preferred bidders are required to meet specified financial obligations within stipulated timelines, failing which the assets revert to the regulator.
Rather than viewing the returned blocks as a setback, the SPE chairman described them as fresh opportunities for other investors interested in Nigeria’s upstream sector.
“It creates another opportunity for companies that may have missed out initially or were not part of the process to participate when those assets become available again,” he added.
Also speaking, the Chairman of the Finance Standing Committee, SPE Nigeria Council, Oladipo Ashafa, said the outcome of the licensing round demonstrated that investors were becoming increasingly selective, with capital flowing to assets offering the strongest commercial prospects.
According to him, some of the premium acreages attracted bids from as many as 25 companies, underscoring continued confidence in Nigeria’s upstream petroleum industry despite global financing challenges.
He noted that investors are increasingly prioritising technically robust and commercially attractive assets over speculative acquisitions, reflecting a shift towards value-driven investment decisions.
NAICE 2026, which is expected to examine how Nigeria can position itself to remain competitive in an evolving global energy landscape, attract investment and build resilience across the oil and gas value chain amid the energy transition, will hold from August 3 to 5 at the Expo Centre, Eko Hotel & Suites, Victoria Island, Lagos.
The gathering is expected to attract about 15,000 delegates from across the country.
