…Debunks claims of 40 expiring oil block licences
From Adanna Nnamani, Abuja
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has dismissed allegations of irregularities in the 2024 oil block licensing round, insisting that the process was conducted in strict adherence to existing laws and guidelines.
In a statement issued on Thursday, the NUPRC refuted reports that alleged the violation of oil licensing procedures and the improper allocation of blocks to companies with questionable eligibility.
According to the Commission Chief Executive, Gbenga Komolafe, the licensing round was executed in full compliance with the Petroleum Industry Act (PIA) and NUPRC’s own licensing frameworks.
Komolafe described the bidding process as transparent, competitive, and technologically driven. He clarified that contrary to claims suggesting a company registered just days before bidding was awarded oil blocks, the guidelines do not restrict participation based on the age of a company. Rather, eligibility is determined through a comprehensive evaluation of technical competence, financial capacity, and legal standing.
The NUPRC boss explained that the technical and financial qualifications of a bidder are judged not by when a company was registered, but by the capacity and track record of its promoters or parent firms.
“This approach allows newly formed Special Purpose Vehicles (SPVs), when backed by credible and experienced industry players, to compete effectively and fairly. The 2024 Licensing Round involved multiple stages, including prequalification, technical evaluation and commercial bid evaluation. Applicants were required to demonstrate financial capability, technical expertise and legal compliance by submitting detailed documentation, such as incorporation papers, tax clearances and proof of operational experience.
“The pre-qualification window was open with no restrictions on company age. The commercial bidding phase was carried out digitally using encrypted technology to ensure the integrity and confidentiality of the data. The results were announced transparently and publicly, featuring live televised sessions that were observed by stakeholders, including the Nigerian Extractive Industry Initiative (NEITI) and relevant government ministries.
“The commercial bid evaluation was conducted using a transparent, digital and point-based assessment system, which included Signature Bonus, Proposed Work Programme Financial Commitments and Work Performance Security,” he stated.
Meanwhile, the Commission has also debunked reports claiming that 40 oil block licences would expire on June 27, 2025. It described the report, based on data misinterpreted from the NUPRC website, as misleading and capable of creating unnecessary alarm within the industry.
NUPRC clarified that the 40 Petroleum Prospecting Licences (PPLs) referenced are at different stages of exploration and development. Many operators have already applied to convert their PPLs to Petroleum Mining Leases (PMLs) as provided by the PIA. These applications are currently undergoing regulatory review.
It further explained that several of the licensees have met the minimum work programme requirements under Section 78 of the PIA, making them eligible for extensions. It stressed that production start-up is not the only benchmark for compliance.
NUPRC urged media platforms to ensure factual and contextual reporting, in line with regulatory statutes. It reiterated its commitment to a transparent and inclusive regulatory regime that protects public interest and supports the sustainable development of Nigeria’s oil and gas resources.