By Ali Elias
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has addressed the controversy surrounding the recent awarding of oil blocks in the 2024 licensing bid round, particularly the emergence of Panout Oil & Gas — a company just eight days old at the time — as a successful bidder.
Panout Oil & Gas reportedly beat industry heavyweight TotalEnergies and three other contenders to secure Production Prospecting Licenses (PPL) 300/301 CS and also claimed PPL 3015, raising eyebrows within and beyond the petroleum sector.
Critics labelled the outcome as “suspicious” and questioned whether the commission had adhered to its regulatory framework. However, the NUPRC has come forward to dispel these concerns, asserting that “no violations of oil licensing guidelines occurred during the 2024 Oil Block Licensing Round.”
In a statement released by the Commission, the Chief Executive, Engr. Gbenga Komolafe, said the bid process was conducted in full compliance with the Petroleum Industry Act (PIA) 2021 and the Commission’s established licensing guidelines. According to him, the exercise was “transparent, competitive, and technology-driven.”
No Age Discrimination in Licensing
Komolafe clarified that the age of a bidding company was not a factor in eligibility, countering assumptions that a recently registered firm could not legitimately compete.
“There is no provision in the bid guidelines that restricts participation based on the age of a company’s incorporation,” Komolafe stated.
Eligibility, he said, was instead determined through a “rigorous assessment of technical expertise, financial strength, and legal compliance.” The Commission considered not only the capacity of the bidding entity but also the track record of its promoters, affiliated entities, and parent companies.
This inclusive framework, he noted, allows newly formed Special Purpose Vehicles (SPVs), when backed by established and credible industry players, to participate meaningfully in competitive rounds.
Transparent, Digitized Process
Komolafe went on to explain that the 2024 bid round followed a multi-stage procedure including prequalification, technical evaluation, and commercial bid assessments — all of which adhered to digital encryption standards to maintain integrity.
“All results were announced publicly in a live televised event, with the process monitored by stakeholders, including the Nigerian Extractive Industries Transparency Initiative (NEITI) and relevant government ministries,” he said.
Commercial bids were evaluated through a transparent, point-based digital system incorporating variables such as Signature Bonuses, Proposed Work Programmes, Financial Commitments, and Work Performance Security.
Local Players on the Rise
The NUPRC also highlighted the strong showing of indigenous oil firms, which “aggressively participated and outbid both national and international competitors.” According to Komolafe, this is an indicator of renewed investor confidence driven by the PIA and reforms under President Bola Tinubu’s administration.
The Commission added that NEITI publicly praised the process for its transparency, professionalism, and inclusivity — particularly noting improvements since the 2022–2023 Mini Bid Round.
Reiterating its stance, the NUPRC said the 2024 licensing round complied fully with legal and regulatory requirements, and no corrupt practices or favouritism were involved.
“The NUPRC remains committed to transparent regulation aimed at optimizing Nigeria’s hydrocarbon resources and attracting investment,” the Commission concluded.
Source: NAN