Uche Cecil Izuora
The 2024 oil and gas bid round which has been adjudged the most transparent was guided by the provisions of the Petroleum Industry Act (PIA) says the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).
The Commission denied any breach of the guidelines during the 2024 oil block licensing round.
The NUPRC further stated that the process was conducted in strict compliance with the Petroleum Industry Act (PIA) and its own licensing guidelines, ensuring a transparent, competitive and technology-driven bidding exercise.
Chief Executive Officer, of the Commission, Mr Gbenga Komolafe, offered the explanation in a statement on Thursday in Abuja.
Komolafe said that eligibility was determined by a rigorous assessment of technical expertise, financial strength and legal compliance.
He said, contrary to claims that a particular company registered days before the commencement of bidding and was improperly awarded oil blocks, guidelines did not restrict participation based on a company’s incorporation age.
“The technical and financial capacity of a bidder was assessed not merely by the date of incorporation of the bidding entity, but by proven track records of its promoters, affiliated companies or parent organisations.’’
This approach, he said allowed newly formed Special Purpose Vehicles (SPVs), when backed by credible and experienced industry players, to compete effectively and fairly.
“The 2024 licensing round involved multiple stages, including pre-qualification, technical evaluation and commercial bid evaluation.
“Applicants were required to demonstrate financial capability, technical expertise and legal compliance by submitting detailed documentation, such as incorporation papers, tax clearances and proof of operational experience.
“The pre-qualification window was open with no restrictions on company age. The commercial bidding phase was carried out digitally using encrypted technology to ensure the integrity and confidentiality of the data.
“The results were announced transparently and publicly, featuring live televised sessions that were observed by stakeholders, including the Nigerian Extractive Industry Initiative (NEITI) and relevant government ministries.
“The commercial bid evaluation was conducted using a transparent, digital and point-based assessment system, which included signature bonus, proposed work programme financial commitments and work performance security,’’ he said.
He highlighted that indigenous oil companies aggressively participated and out-bided some national and international players, reflecting strong investor confidence following the enactment of the PIA 20211.
Komolafe said that the 2024 oil block licensing round, adhered fully to all statutory provisions and guidelines, with no discrimination or corrupt practices involved.
“The NUPRC remains committed to transparent regulation aimed at optimising Nigeria’s hydrocarbon resources and attracting investment under President Bola Tinubu’s administration,” he said.
He reiterated the commitment of the commission to maintain an open dialogue, while upholding a strong and transparent regulatory regime that would benefit all Nigerians.
Komolafe, underscored the importance of ensuring that reports on the operational activities of the commission were contextual, fact-checked and aligned with the statutory provisions under the PIA, 2021 and its regulations.