Fg finally reacts to claim of oil block distribution to ineligible firms

• The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has rejected claims of irregularities successful the 2024 Oil Block Licensing Round, asserting that the process adhered to regulations and was transparent
• The Commission emphasised that eligibility for bidding is based connected ineligible status, fiscal capability, and method expertise, not institution age, and that the bidding phases were conducted digitally with afloat transparency
• NUPRC besides refuted reports of 40 lipid artifact licenses expiring soon, clarifying that galore of these licenses are successful antithetic stages of exploration, with applications for conversion to Petroleum Mining Leases nether review

Legit.ng writer Zainab Iwayemi has 5-year-experience covering the Economy, Technology, and Capital Market.

Claims of irregularities successful the 2024 Oil Block Licensing Round person been rejected by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), which maintains that the process intimately followed existent rules and regulations.

The NUPRC denied allegations made by an online paper that blocks were improperly distributed to firms. Photo Credit: Contributor
Source: Getty Images

In a connection released connected Thursday, June 5, the NUPRC denied allegations made by an online paper that blocks were improperly distributed to firms with dubious eligibility and that violations of lipid licensing rules had occurred.

According to Commission Chief Executive Gbenga Komolafe, the licensing rhythm was carried retired successful implicit accordance with the NUPRC's licensing regulations and the Petroleum Industry Act (PIA) of 2021. He characterised the bidding process arsenic technologically advanced, competitive, and transparent.

In effect to allegations that a recently registered business was fixed lipid blocks, Komolafe stated that a company's property is not a origin successful bidding eligibility. Rather, eligibility is based connected ineligible status, fiscal capability, and method proficiency.

“The method and fiscal qualifications of a bidder are judged by the capableness and way grounds of its promoters oregon genitor firms, not by erstwhile a institution was registered,” helium said.

He clarified that precocious established Special Purpose Vehicles (SPVs) can prosecute successful just contention if they are supported by reputable and seasoned manufacture participants.

The 2024 licensing circular consisted of 3 phases: pre-qualification, method evaluation, and commercialized bid evaluation. The applicants provided broad documents, specified arsenic impervious of operational experience, taxation clearances, and incorporation papers.

“The pre-qualification model was unfastened without restrictions connected institution age. The commercialized bidding signifier was conducted digitally utilizing encrypted exertion to guarantee information integrity and confidentiality. Results were announced transparently during unrecorded televised sessions, observed by stakeholders, including the Nigeria Extractive Industries Transparency Initiative (NEITI) and applicable authorities ministries,” Komolafe added.

He pointed retired that a clear, digital, point-based attack was employed to measure the commercialized bids, assessing Work Performance Security, Proposed Work Program Financial Commitments, and Signature Bonus.

Reports that 40 lipid artifact licenses are scheduled to expire connected June 27, 2025, were besides refuted by the NUPRC, which described the assertion arsenic mendacious and based connected incorrectly interpreted information from the NUPRC website.

The 40 Petroleum Prospecting Licenses (PPLs) successful question are successful varying phases of exploration and development, the Commission explained. Under the PIA, galore operators person submitted applications to person their PPLs into Petroleum Mining Leases (PMLs); these applications are presently being reviewed by regulatory bodies.

The NUPRC added that a fig of licensees are eligible for extensions since they person fulfilled the minimum enactment programme requirements outlined successful Section 78 of the PIA. It emphasized that determination are different standards for compliance too accumulation start-up.

In accordance with regulatory rules, the Commission asked media outlets to warrant truthful and contextual reporting. It restated its dedication to an unfastened and inclusive regulatory model that safeguards the nationalist involvement and promotes the semipermanent maturation of Nigeria's gas and lipid reserves.

40 Nigerian lipid companies look licence expiry hazard

Legit.ng reported that unless the Minister of Petroleum renews their licences successful compliance with the Petroleum Industry Act, at slightest 40 concern lipid licences that are owed to expire successful June 2025 hazard being lost.

The assorted licences granted to antithetic businesses connected 28 June 2022 volition expire connected 27 June 2025, according to the Nigerian Upstream Petroleum Regulatory Commission’s (NUPRC) Upstream Concession Situation Report published successful May.

These see petroleum exploration permits issued to lipid corporations pursuing the completion of the 2020 marginal fields bid round. According to the NUPRC, the instrumentality allows for an optional hold of 3 oregon 5 years; however, the magnitude of the hold volition beryllium connected the company’s performance.

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Source: Legit.ng