Oil Regulator Defends Controversial Licensing Round Decision
The Nigerian Upstream Petroleum Regulatory Commission has firmly defended its decision to award oil blocks to Panout Oil & Gas, an eight-day-old company at the time of bidding, during the 2024 licensing round. The controversial award sparked allegations of regulatory violations and questions about the commission’s adherence to established guidelines.
NUPRC Chief Executive Gbenga Komolafe clarified that bid guidelines do not restrict participation based on company incorporation age. Instead, the commission conducts rigorous assessments of technical expertise, financial strength, and legal compliance. The evaluation process considers the pedigree and proven track record of promoters, affiliated companies, or parent organizations rather than solely focusing on the bidding entity’s incorporation date.
The 2024 licensing round involved multiple stages including prequalification, technical evaluation, and commercial bid evaluation. The commercial bidding phase utilized encrypted digital technology to ensure data integrity and confidentiality, with results announced transparently through live televised sessions observed by stakeholders including the Nigerian Extractive Industry Initiative and relevant government ministries.
Source: Punch Nigeria