The Nigerian Upstream Petroleum Regulatory Commission has broken down why a new company won oil blocks in the 2024 licensing bid round.
This is coming after several complaints over Panout Oil & Gas, an eight-day-old oil company (as of the time of the bid), winning oil blocks.
At the licensing round commercial bid conference held in Lagos last December, Panout Oil & Gas beat TotalEnergies and 3 other bidders to secure PPL 300/301 CS and PPL 3015.
The win has since been tagged “illegal” in some quarters, with many questioning NUPRC’s adherence to its own regulations.
Reacting, the Chief Executive of the NUPRC, Gbenga Komolafe, has said that there were no violations of oil licensing guidelines occurred during the 2024 Oil Block Licensing Round.
The regulator denied the corruption allegation, stating that the entire process was conducted in strict compliance with the Petroleum Industry Act and its own licensing guidelines.
According to him, it was a transparent, competitive and technology-driven bidding exercise because the bid guidelines do not restrict participation based on the age of a company’s incorporation.
He maintained that a thorough assessment of technical expertise, financial strength, and legal compliance determined eligibility, hence the decision to let Panout Oil & Gas compete.
He concluded by saying that the technical and financial capacity of a bidder is assessed not just by the date of incorporation of the bidding entity, but by the track record of its promoters, affiliated companies, or parent organisations.
“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.
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.
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 optimizing Nigeria’s hydrocarbon resources and attracting investment under President Bola Ahmed Tinubu’s administration,” he said.
Folami David is a dynamic journalist who views the world through an analytical lens, translating complex narratives across multiple industries into compelling stories. With an insatiable appetite for information and a keen eye for emerging trends, Folami specializes in uncovering the interconnections between technology, business, culture, and society.
