The Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Engr. Gbenga Komolafe, has refuted recent allegations claiming that a company was improperly awarded oil blocks just days after its incorporation during the 2024 Oil Block Licensing Round.
Komolafe in response to a report suggesting that the NUPRC had violated its guidelines by awarding oil blocks to companies registered shortly before the bidding process commenced.
The NUPRC boss clarified that eligibility for the bidding process was determined through a rigorous evaluation of technical expertise, financial strength, and legal compliance—not by the age of a company’s registration.
No Restriction on Company Age for Bidding
Komolafe emphasised that the bid guidelines did not restrict participation based on the incorporation date of bidding companies.
“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 organisations, not merely by the date of incorporation,” he explained.
This allows new Special Purpose Vehicles (SPVs), backed by credible industry players, to participate fairly in the bidding process.
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He reiterated that the 2024 licensing round followed the highest standards of transparency, professionalism, and legal compliance, ensuring a fair and competitive environment.
Komolafe firmly stated that no violations had occurred during the exercise and that the process adhered strictly to the Petroleum Industry Act (PIA) and the NUPRC’s licensing guidelines.
Transparent Bidding Process
The NUPRC chief outlined that the bidding process involved multiple stages, including prequalification, technical evaluation, and commercial bid evaluation. Applicants were required to submit comprehensive documentation, such as incorporation papers, tax clearances, and proof of operational experience.
In addition, the commercial bidding phase was conducted digitally with encrypted technology to ensure confidentiality and the integrity of the data. The results were announced in a transparent manner through live televised sessions, which were closely monitored by stakeholders such as the Nigerian Extractive Industry Initiative (NEITI) and relevant government ministries.
Komolafe also highlighted that Nigerian indigenous oil companies aggressively participated in the bidding process, outbidding some international players and demonstrating increased investor confidence in the sector following the implementation of the PIA.
NEITI Praises NUPRC’s Transparency
At the conclusion of the licensing round, NEITI commended the NUPRC for the transparency and professionalism displayed throughout the process.
The watchdog organisation noted significant improvements from previous rounds, specifically the 2022-2023 Mini Bid Round, and lauded the NUPRC for its inclusivity and effective management of the licensing exercise.
Komolafe concluded by emphasising that the NUPRC’s efforts were fully in line with statutory provisions, with no corrupt practices or discrimination involved in the awarding of the oil blocks.
Clarification on Expiring Oil Licences
Meanwhile, the NUPRC has also responded to a publication that inaccurately reported that 40 oil block licences were set to expire on June 27, 2025.
The Commission clarified that the report, which was based on a document from the NUPRC’s website, misrepresented the facts and could potentially cause confusion in Nigeria’s upstream petroleum sector.
The NUPRC explained that the referenced 40 Petroleum Prospecting Licences (PPLs) were at various stages of exploration, appraisal, and pre-development, with distinct regulatory requirements and timelines for each.
Many operators have already applied for extensions by submitting requests to convert their PPLs into Petroleum Mining Leases (PMLs), in accordance with the PIA 2021.
It was further stated that these operators had met their minimum work programme obligations under Section 78 of the PIA, qualifying them for extensions.
The Commission emphasised that the commencement of production is not the sole indicator of compliance with regulatory requirements.
Sunday Michael Ogwu is a Nigerian journalist and editor of Pinnacle Daily. He is known for his work in business and economic reporting. He has held editorial roles in prominent Nigerian media outlets, where he has focused on economic policy, financial markets, and developmental issues affecting Nigeria and Africa more broadly.
