The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has firmly denied allegations of misconduct in the 2024 oil block licensing round, emphasizing that the entire process adhered strictly to existing laws and regulatory guidelines.
In a statement released Thursday, NUPRC addressed reports accusing the commission of violating licensing procedures and improperly awarding oil blocks to companies with questionable eligibility.
Commission Chief Executive Gbenga Komolafe asserted that the licensing exercise complied fully with the Petroleum Industry Act (PIA) and NUPRC’s licensing frameworks. He described the bidding process as transparent, competitive, and technologically advanced.
Komolafe clarified misconceptions surrounding the eligibility of newly registered companies, explaining that the age of a company is not a disqualifying factor. Instead, eligibility is assessed through a rigorous evaluation of technical competence, financial capacity, and legal compliance. The qualifications of bidders hinge on the experience and track record of their promoters or parent companies rather than the registration date of the bidding entity.
“This methodology enables newly formed Special Purpose Vehicles (SPVs), supported by credible and experienced industry players, to compete fairly,” Komolafe said.
He detailed that the 2024 licensing round involved multiple phases, including prequalification, technical assessment, and commercial bid evaluation. Applicants were required to submit comprehensive documentation such as incorporation certificates, tax clearances, and evidence of operational experience to prove their eligibility.
The prequalification stage imposed no restrictions based on company age. The commercial bidding was conducted digitally using encrypted technology to maintain confidentiality and data integrity. Results were announced publicly through live televised sessions monitored by stakeholders including the Nigerian Extractive Industry Initiative (NEITI) and relevant government ministries.
The commercial bids were evaluated using a transparent, point-based digital system considering factors such as Signature Bonus, Proposed Work Programme financial commitments, and Work Performance Security.
In addition, the Commission addressed reports claiming that 40 oil block licenses would expire on June 27, 2025, calling the claims misleading and based on misinterpretation of data from the NUPRC website. Such reports, the commission warned, risk causing unwarranted alarm within the industry.
NUPRC explained that the 40 Petroleum Prospecting Licences (PPLs) cited are at various stages of exploration and development. Many operators have submitted applications to convert their PPLs to Petroleum Mining Leases (PMLs), as stipulated under the PIA, and these applications are undergoing regulatory review.
The commission further noted that several licensees have fulfilled the minimum work programme requirements under Section 78 of the PIA, qualifying them for license extensions. It emphasized that commencement of production is not the sole criterion for compliance.
NUPRC called on media outlets to report responsibly, ensuring factual and contextual accuracy in line with regulatory standards. The commission reaffirmed its commitment to a transparent and inclusive regulatory framework that safeguards public interest while promoting sustainable development of Nigeria’s oil and gas sector.
