•Commission rebuts report on expiration of permits for 40 blocks

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) yesterday continued the defence of the conduct of the 2024 oil block licensing round, refuting recent allegations made in an online newspaper that it gave licenses to a company incorporated just days before the process began.

In a statement by the commission in Abuja, it maintained that no violations of oil licensing guidelines occurred during the bid round, contrary to claims that the bidding firm was improperly awarded oil blocks.

The commission clarified that the entire process was conducted in strict compliance with the Petroleum Industry Act (PIA) and its own licensing guidelines, ensuring a transparent, competitive and technology-driven bidding exercise.

The Chief Executive of the NUPRC,  Gbenga Komolafe, explained that the bid guidelines do not restrict participation based on the age of a company’s incorporation; but that instead, eligibility was determined by a rigorous assessment of technical expertise, financial strength and legal compliance.

Komolafe emphasised that the technical and financial capacity of a bidder is assessed not merely by the date of incorporation of the bidding entity, but by the pedigree and proven track record of its promoters, affiliated companies or parent organisations.

This approach, he said, 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 Nigeria Extractive Industries Initiative (NEITI) and relevant government ministries,” he added.

According to him, 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.

The statement highlighted that indigenous oil companies aggressively participated and outbid some national and international players, reflecting strong investor confidence following the enactment of the PIA 2021.

“At the conclusion of the process, NEITI publicly commended the transparency of the exercise after witnessing the entire procedure. The report praised NUPRC for significant improvements in the 2022-2023 mini bid round and the 2024 licensing round, emphasising professionalism, transparency and inclusivity,” it pointed out.

The commission insisted that the 2024 oil block licensing round adhered fully to all statutory provisions and guidelines, with no discrimination or corrupt practices involved.

“The NUPRC remains committed to transparent regulation aimed at optimising Nigeria’s hydrocarbon resources and attracting investment under President Bola Tinubu’s administration,” it added.

Also, the commission has rebutted a publication that ‘incorrectly’ claimed that 40 oil block licenses will expire on June 27 this year. It said the report, based on a document downloaded from the NUPRC website, misinterpreted the facts and is capable of causing unnecessary panic and confusion within Nigeria’s upstream petroleum industry.

The commission clarified that the 40 Petroleum Prospecting Licences (PPLs) referenced in the publication were at different stages of exploration, appraisal and pre-development, with each stage having distinct regulatory requirements and timelines.

“Several licensees have formally applied to convert their PPLs into Petroleum Mining Leases (PMLs), as required by the PIA 2021. These applications are currently under review,” Komolafe stated.

He explained that many of the operators had already fulfilled their minimum work programme obligations under Section 78 of the PIA, qualifying them for extensions, stressing that production commencement is not the sole measure of compliance.

The commission asserted its commitment to maintaining an open dialogue while upholding a strong and transparent regulatory regime that benefits all Nigerians.

It highlighted the importance of ensuring that reports on the operational activities of the commission are contextual, fact-checked and aligned with the statutory provisions under the PIA, 2021, and its regulations.