Business
NUPRC dismisses oil block licensing irregularity claims, assures transparency
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has strongly denied allegations of irregularities in the 2024 oil block licensing round, asserting the process was transparent and strictly adhered to legal guidelines, while also refuting claims of mass license expirations
The NUPRC Oil Block licensing round of 2024 has been vigorously defended by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), which has dismissed all allegations of irregularities.
Also read: Oil crash hits Nigeria’s budget
The commission insists that the entire process was conducted in strict adherence to existing laws and guidelines, refuting reports claiming violations of oil licensing procedures and improper allocation of blocks.
In a statement issued on Thursday, NUPRC addressed reports that alleged the allocation of blocks to companies with questionable eligibility.
The Commission Chief Executive, Gbenga Komolafe, clarified that the licensing round was executed in full compliance with the Petroleum Industry Act (PIA) and NUPRC’s own licensing frameworks.
Komolafe described the bidding process as transparent, competitive, and technologically driven. He directly addressed claims suggesting that a company registered just days before bidding was awarded oil blocks, by clarifying that the guidelines do not restrict participation based on the age of a company.
Instead, eligibility is determined through a comprehensive evaluation of technical competence, financial capacity, and legal standing.
The NUPRC boss explained that the technical and financial qualifications of a bidder are judged not by when a company was registered, but by the capacity and track record of its promoters or parent firms.
“This approach allows newly formed Special Purpose Vehicles (SPVs), when backed by credible and experienced industry players, to compete effectively and fairly,” Komolafe stated.
He further detailed that the 2024 Licensing Round involved multiple stages, including prequalification, 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,” Komolafe highlighted. “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.”
He added that 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.
Meanwhile, the Commission also debunked reports claiming that 40 oil block licenses would expire on June 27, 2025. It described the report, based on data misinterpreted from the NUPRC website, as misleading and capable of creating unnecessary alarm within the industry.
NUPRC clarified that the 40 Petroleum Prospecting Licences (PPLs) referenced are at different stages of exploration and development. Many operators have already applied to convert their PPLs to Petroleum Mining Leases (PMLs) as provided by the PIA, and these applications are currently undergoing regulatory review.
It further explained that several of the licensees have met the minimum work programme requirements under Section 78 of the PIA, making them eligible for extensions, stressing that production start-up is not the only benchmark for compliance.
NUPRC urged media platforms to ensure factual and contextual reporting, in line with regulatory statutes. It reiterated its commitment to a transparent and inclusive regulatory regime that protects public interest and supports the sustainable development of Nigeria’s oil and gas resources.
Cement price manipulation is under investigation by the FCCPC after a three-month study found Nigerian prices were high despite surplus capacity
Shoreline Group today announced that African Export-Import Bank (Afreximbank) has approved a US$200 million facility in favour of Shoreline Power Company Limited and co-borrowers including Arkad S.p.A., Shoreline’s majority-owned engineering and construction platform.
Approved in June 2026, the facility was arranged and provided by Afreximbank as sole mandated lead arranger and lender. It provides bonding and working-capital capacity for Arkad’s delivery of the Hassi Bir Rekaiz project and supports Shoreline and its affiliates in developing further pipeline and infrastructure
projects in Nigeria and other permitted jurisdictions.
“This is a defining transaction for Shoreline and Arkad. We built Arkad as an African- sponsored engineering platform capable of competing at the highest level, and it is now delivering against a billion-dollar energy contract. Afreximbank’s US$200 million commitment gives the platform the financial strength to match its engineering capability and pursue further major infrastructure mandates. It demonstrates that African enterprises can assemble the capital, capability and partnerships required to compete for infrastructure at international scale.”
Hassi Bir Rekaiz Phase 2a Arkad holds 44 per cent of the approximately US$1 billion EPCCS-1 contract awarded by Groupement
Hassi Bir Rekaiz (GHBR) to an unincorporated consortium led by Egypt’s Petrojet, which holds 56 percent. EPCCS-1 covers engineering, procurement, construction, commissioning and start-up for the Phase 2a central processing facility and related infrastructure at the Hassi Bir Rekaiz field in Algeria’s Berkine
Basin.
GHBR is the joint operating entity for the licence, held by Sonatrach with 51 per cent and Thailand’s PTTEP with 49 per cent. The project includes a new crude oil processing facility with capacity of 31,500 barrels per day, facilities for associated gas and produced-water treatment, approximately 217 kilometres
of pipelines and the brownfield modifications required to integrate existing Phase 1 infrastructure.
The facilities are designed to support later expansion to 63,000 barrels per day under Phase 2b.
“This financing addresses the instruments that determine whether an EPC contractor can execute at scale: performance guarantees, advance payment guarantees and working capital through the project cycle. Hassi Bir Rekaiz is a demanding scope, combining a new central processing facility, associated treatment systems, pipelines and brownfield integration. With Petrojet, and with the support of Shoreline and Afreximbank, Arkad is focused on disciplined delivery against the project’s safety, quality and schedule requirements.”
The transaction was structured under Afreximbank’s Engineering, Procurement and Construction Initiative, which supports African engineering and construction firms with the financial instruments required to compete for and execute large infrastructure contracts. Afreximbank also supported the Arkad-Petrojet partnership through its EPC twinning work at the Intra-African Trade Fair held in Algiers
in 2025.
According to Afreximbank, the transaction is its first support for a Sub-Saharan African contractor undertaking a major infrastructure project in North Africa. For Shoreline, it demonstrates a practical model for combining African ownership and capital with established international engineering andindustrial capability.
-
Politics2 years ago
13 Ondo Assembly Members Disown Endorsement of Aiyedatiwa
-
Politics2 years ago
APC Group, Ondo Govt, Quarrel Over Money for Endorsement
-
Trending News5 years agoStop unsavoury, inciting statements – DSS warns
-
Others5 years agoAdron Homes Celebrates 10 Years Of Housing Excellence
-
Humanity5 years agoPresident Buhari Commiserates With Ambassador Maureen Tamuno Over The Loss Of Her Father
-
Others7 years agoEX- CUSTOMS BOSS, IBRAHIM MERA’S DWINDLING FAME
-
Business2 years agoBigi Carbonated Soft Drinks Treats 40 Consumers to an Epic Easter Movie Hangout
-
Business2 years agoWema Bank Shines at Global SME Finance Forum Conference Awards 2024 …Awarded: • SME Financier of the Year (Africa) • Platinum Award for Best Financier for Women Entrepreneurs (Africa)