The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has strongly denied allegations of guideline violations during the 2024 Oil Block Licensing Round, asserting that the entire process was conducted in full compliance with the Petroleum Industry Act (PIA) and established licensing procedures. Responding to claims by an online publication, the Commission clarified that no rules were breached in awarding oil blocks, including to a company registered shortly before the bidding began.
According to the Commission Chief Executive, Engr. Gbenga Komolafe, eligibility was based on a robust evaluation of technical expertise, financial strength, and legal compliance—not the age of incorporation. He explained that newly formed Special Purpose Vehicles (SPVs) backed by credible and experienced industry players were allowed to compete on equal footing. The licensing round followed a multi-stage process—prequalification, technical evaluation, and commercial bidding—all of which employed secure, encrypted digital platforms to ensure transparency and integrity.
The commercial bidding phase was marked by a transparent point-based system that assessed Signature Bonus offers, Proposed Work Programme Financial Commitments, and Work Performance Security. Indigenous companies notably outperformed some international competitors, signaling renewed investor confidence under the PIA regime. The Nigerian Extractive Industry Initiative (NEITI) and other government bodies observed the process, and NEITI later praised the Commission’s transparency and professionalism.
In a separate clarification, the NUPRC dismissed a misleading newspaper report suggesting that 40 oil block licences would expire on June 27, 2025. The Commission explained that these Petroleum Prospecting Licences (PPLs) are at varying stages of exploration and development. Several operators have applied to convert their licences into Petroleum Mining Leases (PMLs), and many have already met the work programme requirements outlined in Section 78 of the PIA.
