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NUPRC Dispels Claims of Marginal Field Irregularities

The Nigerian Upstream Regulatory Commission (NUPRC) responded on Wednesday to allegations regarding the 2020/2021 marginal fields award, asserting that all companies awarded marginal fields were qualified and fulfilled their signature bonus payments.

The controversy arose from a report by a national newspaper, citing a document from the Nigeria Extractive Industries Transparency Initiative (NEITI), which alleged that the NUPRC deviated from its regulations in implementing the marginal fields award.

Contrary to the report, the Gbenga Komolafe-led NUPRC issued a statement refuting the claims, labeling them as incorrect and a misrepresentation of the award process. The commission expressed surprise that NEITI was associated with such a narrative, noting that NEITI had disclaimed the newspaper report, emphasizing that it did not reflect the position in the said report.

The report reads:

“A number of these entities were offered fields on a joint basis. The commission, upon inception, had to embark on extensive stakeholder engagements with the successful bidders to resolve the many issues arising from the policy of jointly awarding some of the fields to several awardees. These engagements were held in both Lagos and Abuja.

“In the event where those offered fields in the exercise were unable to fulfil their obligation to pay the signature bonus within the time frame specified, the commission sought and obtained the approval of the presidency to re-award those not paid for to other entities who participated in the bid exercise but who were not offered any fields during the initial stage.

“These later awards were premised on the condition that considered companies present clear evidence of both financial and technical capability.

“Other than the provisional award letters issued to qualified bidders (which contain the terms and conditions of the award including the signature bonus payable), in all cases, final letters of award were only issued upon payment of 100 per cent of the signature bonus by or on behalf of the awardee.

“It is worth restating that as a regulatory body governed by laws under the Petroleum Industry Act (PIA) of 2021, the commission neither awarded marginal fields to entities that did not participate in the 2020 marginal bid round nor awarded a field to any company that did not meet the obligation of paying the statutory signature bonus.

“As the upstream oil and gas regulator, the NUPRC will remain transparent and predictable in its mandate to reposition the upstream sector of our economy to attract credible investors for the shared prosperity of the nation.”

The NUPRC clarified that at the end of the marginal field award exercise, 161 entities were offered marginal fields out of the 482 pre-qualified bids.

The commission engaged in extensive stakeholder consultations to address issues arising from jointly awarding some fields to multiple entities. In cases where awardees failed to meet signature bonus payment obligations within the specified timeframe, the commission sought and obtained presidential approval to re-award those fields to other qualified bidders from the initial exercise.

These later awards were contingent on companies presenting clear evidence of both financial and technical capability. The NUPRC emphasized that final letters of award were issued only upon the full payment of the signature bonus.

The regulatory body, governed by laws under the Petroleum Industry Act (PIA) of 2021, emphasized its commitment to transparency and predictability in fulfilling its mandate.

It categorically denied awarding marginal fields to entities that did not participate in the bid round or awarding fields to companies that did not fulfill their statutory signature bonus payments.

The NUPRC reiterated its dedication to repositioning the upstream sector for the benefit of the nation.

SOURCE: nkonlineblog.com

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