For the umpteenth times, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) insists there was no violations of any oil licensing guidelines stipulated to guide the 2024 Oil Block Licensing Round.
In recent times, several publications have emerged in the media about allegations of illegal activities that were said to have compromised the integrity of the bid exercise, which attracted global acclaim as the most transparent in the country’s recent history.
But reacting to the latest allegation in an online publication, the Commission clarified that the entire process was conducted in strict compliance with the provisions of the Petroleum Industry Act (PIA) 2021 and guidelines it spelt out to ensure the bidding under the licensing round was transparent, competitive and technology-driven.
In a statement issued in Abuja on Thursday, the Commission Chief Executive (CCE), Engr. Gbenga Komolafe, said that contrary to claims in the publications, there was no case of any company that registered days before the commencement of bidding and was improperly awarded oil blocks during the bidding exercise.
Mr Komolafe clarified that although the bid guidelines did not restrict participation by prospective bidders based on the age of their company’s incorporation, eligibility was determined by a rigorous assessment of technical expertise, financial strength and legal compliance.
He emphasised that the technical competence and financial capacity of a bidder were 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 allowed newly formed Special Purpose Vehicles (SPVs), when backed by credible and experienced industry players, to compete effectively and fairly,” he explained.
The 2024 Licensing Round, he pointed out, involved multiple stages, including prequalification, technical evaluation and commercial bid evaluation.
At all stages, the CCE said 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, he noted, was open with no restrictions on company age, while the commercial bidding phase was carried out digitally using encrypted technology, to ensure the integrity and confidentiality of the data.
The results from each phase, he said, 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.
Komolafe highlighted the aggressive participation of indigenous oil companies which outbided some national and international players, reflecting strong investor confidence, following the enactment of the PIA 2021.
At the conclusion of the process, Komolafe said NEITI, the agency in charge of transparency and accountability in the extractive industry, publicly commended the transparency of the exercise after witnessing the entire procedures.
The report praised the NUPRC for recording significant improvements on its achievement during the 2022-2023 Mini Bid Round and the 2024 Licensing Round, emphasizing professionalism, transparency and inclusivity.
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 of the operations of the oil and gas industry aimed at optimizing Nigeria’s hydrocarbon resources and attracting investment under President Bola Ahmed Tinubu’s administration,” he said.
Meanwhile, the Commission has also rebutted a publication that incorrectly claimed that 40 oil block licences would expire by June 27 this year.
The Commission said the report, which was based on a document downloaded from the NUPRC website, misinterpreted the facts, 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.
“Each stage has distinct regulatory requirements and timelines. Several licensees have formally applied to convert their PPLs into Petroleum Mining Leases (PMLs), as required by the Petroleum Industry Act (PIA) 2021. These applications are currently under review,” the Commission said.
“Many of the operators have already fulfilled their minimum work programme obligations under Section 78 of the PIA, qualifying them for extensions. Production commencement is not the sole measure of compliance,” the Commission added.
The Commission firmly reasserts its commitment to maintaining an open dialogue, while upholding a strong and transparent regulatory regime that benefits all Nigerians.
Also, it highlighted the importance of ensuring that reports on the operational activities of the Commission were contextual, fact-checked and aligned with the statutory provisions under the PIA, 2021, and its regulations.
