Onyeche Wofurum Igwe
Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has denied allegations that the 2024 Oil Block Licensing Round was marred by violations of oil licensing guidelines.
In a statement issued on Thursday, the Commission’s Chief Executive, Engr. Gbenga Komolafe, explained that the entire process was conducted in strict compliance with the Petroleum Industry Act (PIA) and the Commission’s licensing guidelines.
The NUPRC emphasized that the bid guidelines did 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 assessed the technical and financial capacity of bidders based on the pedigree and proven track record of its promoters, affiliated companies, or parent organizations.
According to NUPRC, the 2024 Licensing Round involved multiple stages, including prequalification, technical evaluation, and commercial bid evaluation.
The NUPRC highlighted that indigenous oil companies aggressively participated and outbid some national and international players, reflecting strong investor confidence following the enactment of the PIA. The Commission also noted that the Nigerian Extractive Industry Initiative (NEITI) publicly commended the transparency of the exercise after witnessing the entire procedure.
The Commission has rebutted a report that 40 oil block licenses will expire on June 27, 2025. According to the NUPRC, the report misinterprets the facts and is capable of causing unnecessary panic and confusion within Nigeria’s upstream petroleum industry.
Gbenga clarified that the 40 Petroleum Prospecting Licenses (PPLs) referenced in the publication are at different stages of exploration, appraisal, and pre-development.
He said that 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 PIA. These applications are currently under review.
The Commission emphasized that many of the operators have already fulfilled their minimum work program obligations, qualifying them for extensions.
The NUPRC asserted its commitment to maintaining an open dialogue while upholding a strong and transparent regulatory regime that benefits all Nigerians. The Commission highlighted the importance of ensuring that reports on its operational activities are contextual, fact-checked, and aligned with statutory provisions under the PIA and its regulations.
The statement reads: “The NUPRC remains committed to transparent regulation aimed at optimizing Nigeria’s hydrocarbon resources and attracting investment under President Bola Ahmed Tinubu’s administration.”
“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.”
“The Commission firmly asserts its commitment to maintaining an open dialogue while upholding a strong and transparent regulatory regime that benefits all Nigerians.”
