From Adanna Nnamani, Abuja
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has dismissed allegations of irregularities in the 2024 Oil Block Licensing Round, asserting that the process strictly adhered to existing laws and guidelines.
In a statement issued on Thursday, June 5, the NUPRC refuted claims by an online publication alleging violations of oil licensing procedures and improper allocation of blocks to companies with questionable eligibility.
Commission Chief Executive Gbenga Komolafe stated that the licensing round was conducted in full compliance with the Petroleum Industry Act (PIA) 2021 and NUPRC’s licensing frameworks. He described the bidding process as transparent, competitive, and technologically driven.
Komolafe clarified that eligibility for bidding is not based on a company’s age, countering claims that a recently registered company was awarded oil blocks. Instead, eligibility hinges on technical competence, financial capacity, and legal standing. “The technical and financial qualifications of a bidder are judged by the capacity and track record of its promoters or parent firms, not by when a company was registered,” he said.
He explained that newly formed Special Purpose Vehicles (SPVs), when backed by credible and experienced industry players, are eligible to compete fairly. The 2024 Licensing Round involved multiple stages: pre-qualification, technical evaluation, and commercial bid evaluation. Applicants submitted detailed documentation, including incorporation papers, tax clearances, and proof of operational experience.
“The pre-qualification window was open without restrictions on company age. The commercial bidding phase was conducted digitally using encrypted technology to ensure data integrity and confidentiality. Results were announced transparently during live televised sessions, observed by stakeholders, including the Nigeria Extractive Industries Transparency Initiative (NEITI) and relevant government ministries,” Komolafe added.
He noted that the commercial bid evaluation used a transparent, digital, point-based system assessing Signature Bonus, Proposed Work Programme Financial Commitments, and Work Performance Security.
The NUPRC also debunked reports claiming that 40 oil block licences are set to expire on June 27, 2025, calling the claim misleading and based on misinterpreted data from the NUPRC website. The Commission clarified that the 40 Petroleum Prospecting Licences (PPLs) in question are at various stages of exploration and development. Many operators have applied to convert their PPLs to Petroleum Mining Leases (PMLs) under the PIA, with applications under regulatory review.
The NUPRC further stated that several licensees have met the minimum work programme requirements under Section 78 of the PIA, qualifying them for extensions. It emphasised that production start-up is not the sole benchmark for compliance.
The Commission urged media outlets to ensure accurate and contextual reporting in line with regulatory statutes. It reaffirmed 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.