The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has firmly refuted allegations of irregularities in the 2024 Oil Block Licensing Round, stating that the process was conducted in strict compliance with the Petroleum Industry Act (PIA) and its own licensing guidelines. The Commission emphasized that the bidding exercise was transparent, competitive, and technology-driven.
Contrary to reports that a company registered days before the commencement of bidding was improperly awarded oil blocks, NUPRC’s Chief Executive, Engr. Gbenga Komolafe, explained that the bid guidelines do not restrict participation based on the age of a company’s incorporation. Instead, eligibility was determined by a rigorous assessment of technical expertise, financial strength, and legal compliance.
The Commission also clarified that the technical and financial capacity of a bidder is assessed based on the pedigree and proven track record of its promoters, affiliated companies, or parent organizations. This approach allows newly formed Special Purpose Vehicles (SPVs), backed by credible and experienced industry players, to compete effectively and fairly.
In addition, the NUPRC rebutted a report claiming that 40 oil block licences will expire on June 27, stating that the licences are at different stages of exploration, appraisal, and pre-development. The Commission explained that several licensees have formally applied to convert their Petroleum Prospecting Licences (PPLs) into Petroleum Mining Leases (PMLs), as required by the PIA 2021, and these applications are currently under review.
The NUPRC emphasized its commitment to maintaining a transparent regulatory regime that benefits all Nigerians and highlighted the importance of ensuring that reports on its operational activities are contextual, fact-checked, and aligned with statutory provisions.