NUPRC defends Oil Block awards amid controversy over new firm’s bid victory
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has defended the integrity of the 2024 Oil Block Licensing Round following widespread criticism over the award of lucrative oil blocks to a newly incorporated company, Panout Oil & Gas.
Concerns were raised after it emerged that Panout, just eight days old at the time of bidding, clinched Production Petroleum Licences (PPL) 300/301 CS and 3015, outperforming industry giants such as TotalEnergies and three other contenders during the commercial bid round held last December in Lagos.
Critics labelled the process “illegal,” questioning whether the NUPRC violated its own regulations by allowing such a young company to secure critical upstream assets.
However, the Commission has categorically denied any wrongdoing.
“There were no violations of oil licensing guidelines during the 2024 Oil Block Licensing Round,” the NUPRC said in an official statement. It emphasized that the exercise was “transparent, competitive, and technology-driven,” in full alignment with the Petroleum Industry Act (PIA) and relevant regulatory frameworks.
NUPRC Chief Executive, Gbenga Komolafe, clarified that bid participation was not contingent on the age of a company. Instead, eligibility was based on “a rigorous assessment of technical expertise, financial strength, and legal compliance,” including the qualifications of a firm’s promoters and affiliated entities.
“Special Purpose Vehicles (SPVs) formed for the bid round were evaluated on the merits of their backers’ operational track records and financial standing,” Komolafe explained.
He added that the process included prequalification, technical evaluation, and a commercial bidding stage conducted digitally with encrypted tools.
The final bids were announced publicly in a live, televised session attended by key stakeholders, including the Nigerian Extractive Industry Transparency Initiative (NEITI) and other government bodies.
The Commission noted that indigenous firms, including Panout, outbid multinational players in some cases, citing this as a sign of growing investor confidence under Nigeria’s reformed petroleum governance regime.
NEITI reportedly praised the licensing round for its professionalism and transparency, particularly noting improvements over previous bid rounds.
In concluding, the NUPRC reiterated its commitment to fairness and accountability in line with the reform agenda of President Bola Ahmed Tinubu’s administration.
“The 2024 Licensing Round adhered strictly to statutory provisions. There was no discrimination, and no corrupt practices occurred,” the Commission said. “We remain focused on optimizing Nigeria’s hydrocarbon assets through credible, investor-friendly processes.”
