… As Renaissance Energy increases crude oil output by 200,000bpd
By Charles Ebi
Nigerian Upstream Petroleum Regulatory Commission ,NUPRC, has affirmed that it followed due process and did not violate oil licensing guidelines during the 2024 Oil Block Licensing Round.
The upstream regulator also affirmed the licensing round was conducted in line with the provisions of the Petroleum Industry Act, 2021.
The NUPRC stated this position while refuting allegations by a newspaper, suggesting guidelines were violated.
NUPRC said on Wednesday that “The entire 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”.
The paper claimed that a particular company registered days before the commencement of bidding was improperly awarded oil blocks.
In his clarification, the Commission Chief Executive ,CCE, Engr. Gbenga Komolafe, explained that the bid guidelines do not restrict participation based on the age of a company’s incorporation; instead, eligibility was determined by a rigorous assessment of technical expertise, financial strength and legal compliance.
The NUPRC boss noted that the “technical and financial capacity of a bidder is assessed not merely by the date of incorporation of the bidding entity, but by the pedigree and proven track record of its promoters, affiliated companies or parent organisations.
‘This approach allows newly formed Special Purpose Vehicles ,SPVs, when backed by credible and experienced industry players, to compete effectively and fairly”.
He further explained that the 2024 Licensing Round involved multiple stages, including prequalification, technical evaluation and commercial bid evaluation.
The NUPRC boss said 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.
Komolafe said, “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 of the 2024 Licensing Rounds were announced transparently and publicly.
Also, the Nigerian Extractive Industry Initiative ,NEITI, and relevant government ministries were part of the process.
The CCE said, “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.
NUPRC also noted that indigenous oil companies aggressively participated and outbid some national and international players, reflecting strong investor confidence following the enactment of the PIA 2021.
It is understoods that at the conclusion of the process, NEITI commended the transparency of the exercise.
NUPRC noted, “The NEITI report praised NUPRC for significant improvements in the 2022-2023 Mini Bid Round and the 2024 Licensing Round, emphasizing professionalism, transparency and inclusivity.
“The Commission insisted that the 2024 Oil Block Licensing Round adhered fully to all statutory provisions and guidelines, with no discrimination or corrupt practices involved”.
Komolafe reiterated NUPRC’s commitment to transparency in its upstream regulatory obligations in line with the government’s ambition.
He said, “The NUPRC remains committed to transparent regulation aimed at optimizing Nigeria’s hydrocarbon resources and attracting investment under President Bola Tinubu’s administration”.
Similarly, the Commission refuted a publication in one of the newspapers, that claimed that 40 oil block license will expire on June, 27 this year.
NUPRC said the report misinterpreted a document downloaded from the NUPRC website.
“The Commission clarified that the 40 Petroleum Prospecting Licences ,PPLs, referenced in the publication are at different stages of exploration, appraisal and pre-development.
“Each stage has distinct regulatory requirements and timelines. Several licensees have formally applied to convert their PPLs into Petroleum Mining Leases ,PMLs, as required by the Petroleum Industry Act (PIA) 2021. These applications are currently under review”, It are
According to the NUPRC, many of the operators have already fulfilled their minimum work programme obligations under Section 78 of the PIA, qualifying them for extensions.
It said, “Production commencement is not the sole measure of compliance, the Commission emphasised.
“The Commission firmly asserts its commitment to maintaining an open dialogue while upholding a strong and transparent regulatory regime that benefits all Nigerians”.
The NUPRC emphasised the importance of ensuring that reports on its operations are properly contextualised, thoroughly fact-checked, and aligned with the statutory provisions of the Petroleum Industry Act (PIA) 2021 and its accompanying regulations.
Since the acquisition and operational takeover of Shell Petroleum Development Company’s ,SPDC, onshore assets in Nigeria, Renaissance Africa Energy Company has increased the crude oil production of the assets by over 200,000 barrels per day.
This was revealed when a delegation from Renaissance Africa Energy Company Limited ,RAEC, paid a courtesy visit to the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun.
The meeting was part of ongoing engagement with strategic indigenous players in Nigeria’s energy sector.
Renaissance Africa Energy Holdings, a consortium of Nigerian and international oil and gas companies, had acquired Shell Petroleum Development Company of Nigeria ,SPDC, a subsidiary of Shell, in a deal valued at $1.3bn.
The acquisition involves Renaissance acquiring 100% equity in SPDC, which holds onshore assets in the Niger Delta region.
The deal was completed after initial agreement in January 2024 and all regulatory approvals were obtained. SPDC had been renamed to Renaissance Africa Energy Company Limited.
The delegation was led by Dr. Layi Fatona, Chairman of RAEC, alongside Engr. Tony Attah, the company’s Managing Director and Chief Executive Officer. The purpose of the visit was to formally brief the Minister on RAEC’s recent acquisition and operational takeover of Shell Petroleum Development Company ,SPDC, onshore assets in Nigeria.
During the meeting, the RAEC leadership shared key updates, highlighting that since assuming control of the assets, the company has ramped up production to over 200,000 barrels per day, a major milestone for both RAEC and the broader Nigerian oil and gas industry.
Fatona and Attah reaffirmed RAEC’s full alignment with the Federal Government’s economic priorities, particularly in revenue generation, job creation, and upstream expansion.
They reiterated their long-term commitment to community engagement and responsible energy development.
In his remarks, Edun applauded the operational strides made by RAEC. He noted that the increasing participation of Nigerian-owned companies in key sectors reflects a broader shift toward homegrown solutions and inclusive economic growth.
The Minister reiterated President Bola Tinubu’s commitment to fostering a level playing field for all private sector actors and stressed the importance of sustained collaboration between government and industry to deliver long-term value to the nation.
The meeting concluded with a shared understanding of indigenous firms like RAEC’s vital role in Nigeria’s energy transition and macroeconomic advancement.
