NUPRC Clarifies On Alleged Violation Of Guidelines, Expiration Of Licences
By Sunday Etuka, Abuja
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has again clarified that there were no violations of oil licensing guidelines during the 2024 Oil Block Licensing Round as was recently alleged.
This is just as it rebutted a publication in one of the newspapers claiming that 40 oil block licences would expire on June 27 this year.
The Commission made the clarification in a statement made available to TheFact Daily on Thursday.
It noted that the entire process of the 2024 Oil Block Licensing Round was conducted in strict compliance with the Petroleum Industry Act (PIA) and its own licensing guidelines, ensuring a transparent, competitive and technology-driven bidding exercise.
The Commission Chief Executive (CCE), Engr. Gbenga Komolafe, while clarifying the claims that a particular company that registered days before the commencement of bidding was improperly awarded oil blocks, 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.
Engr. Komolafe, according to the statement, emphasised that 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. This approach allows newly formed Special Purpose Vehicles (SPVs), when backed by credible and experienced industry players, to compete effectively and fairly.
NUPRC said “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. The commercial bidding phase was carried out digitally using encrypted technology to ensure the integrity and confidentiality of the data. The results 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.
The statement highlighted that indigenous oil companies aggressively participated and outbid some national and international players, reflecting strong investor confidence following the enactment of the PIA 20211.
“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, emphasizing professionalism, transparency and inclusivity,” it said.
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,” it added
Meanwhile, the Commission rebutted a publication that 40 oil block licences will expire on June, 27 this year.
It said the report, based on a document downloaded from its website, misinterprets the facts and is 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 are 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.
It explained that 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 emphasised.
The Commission firmly asserts its commitment to maintaining an open dialogue while upholding a strong and transparent regulatory regime that benefits all Nigerians. It highlighted the importance of ensuring that reports on the operational activities of the Commission are contextual, fact-checked and aligned with the statutory provisions under the PIA, 2021, and its regulations.
