EXCLUSIVE: Tinubu Govt Awards Oil Blocks To Firm Registered Eight Days Before Bidding, Violating NUPRC Licensing Guidelines
In what critics describe as a brazen violation of Nigeria’s petroleum licensing protocols, the administration of President Bola Ahmed Tinubu has awarded two oil blocks to a firm registered only eight days before the formal announcement of a bidding round. The firm, Panout Oil and Gas Limited, emerged as a surprising beneficiary in the 2024 Marginal Fields Bid Round, raising serious concerns about transparency and compliance in Nigeria’s upstream oil sector.
On May 14, 2024, the Nigerian government officially launched the bidding process for 12 oil blocks and seven deep offshore assets under the auspices of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC). This launch, held during a high-profile international roadshow in Miami, Florida, was championed by the NUPRC Chief Executive, Engr. Gbenga Komolafe, who praised the initiative as a cornerstone of Nigeria’s strategic hydrocarbons development plan.
However, SaharaReporters has uncovered that Panout Oil and Gas Limited was incorporated with the Corporate Affairs Commission (CAC) on May 6, 2024—just eight days before the bidding process was officially declared open. By December 2024, only eight months after its formation, the company had been awarded two significant assets: PPL 300 and PPL 301-CS. The NUPRC hailed the outcome as a “keenly competitive process,” but industry watchers and anti-corruption advocates are sounding alarms.
A review of the NUPRC’s pre-qualification criteria for the 2024 marginal bid round casts doubt on Panout’s eligibility. According to the guidelines, any newly incorporated company must demonstrate its capacity by leveraging the corporate, financial, and technical records of a parent company or its shareholders. Specifically, the NUPRC states:
“Prospective Bidder or Bidder which is a newly incorporated company in Nigeria shall be qualified with the information of the parent company or aggregate information of its shareholders and their affiliates.”
Yet, the CAC registry lists Panout Oil and Gas Limited as an entirely independent entity. Its sole significant controller is one Alao Saheed Olatubosun, who owns 100% of the company’s shares. There is no documented linkage to a parent company, no consortium, and no affiliation with any established oil and gas entity.
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Further complicating matters is the issue of financial viability. The NUPRC requires all bidders to submit:
- Five years of audited financial statements
- A minimum average annual turnover of $50 million (for onshore/shallow assets)
- Evidence of funding capacity, such as bank guarantees or proof of liquidity
It remains unclear how a company just days old at the start of the process and less than a year old at the time of award could meet these rigorous requirements. There is no available public record of Panout having verifiable operations, staff, or audited financials predating its May 2024 registration.
The sole owner of Panout, Alao Saheed Olatubosun, is also listed as the Chief Executive Officer of Blueprint Business Technology, an IT firm. There is no indication from CAC records or the company website that Blueprint has any experience in oil and gas operations. Furthermore, no formal relationship is indicated between Blueprint and Panout.
Despite multiple efforts, the NUPRC has not provided clarification. SaharaReporters attempted to contact the commission through the 24-hour hotline provided on the licensing portal, but the line failed to connect. Text messages sent to the number went unanswered as of the time of filing this report.
This incident, critics argue, reflects a broader pattern of opacity in Nigeria’s resource governance under President Tinubu’s administration. While the NUPRC touts the licensing round as transparent and competitive, the emergence of a previously unknown and untested company as a winner of two oil blocks raises troubling questions:
- Was there political interference in the award process?
- Did Panout receive insider knowledge or fast-tracked vetting?
- Were any due diligence procedures skipped or manipulated?
One petroleum sector analyst who spoke on condition of anonymity remarked: “This is not how credible bid rounds are conducted. When a one-man company with no oil sector footprint secures two licenses within months of formation, it undermines investor confidence and signals that the playing field may be rigged.”
Under past administrations, Nigeria faced similar controversies. Critics recall the 2005 licensing rounds under President Obasanjo and later, the 2010 rounds under President Jonathan, both of which were dogged by questions of favoritism and lack of transparency. The 2024 marginal bid round was expected to mark a clean break from that legacy, especially with the Petroleum Industry Act (PIA) now in place to bolster regulatory integrity.
Instead, many now fear a regression. Civil society groups have begun calling for an independent audit of the entire bidding process. The Natural Resource Governance Institute (NRGI), in a statement last week, urged the Nigerian Senate to open hearings into the matter.
Nigeria is currently seeking foreign direct investment in its energy sector to stem the decline in production and boost revenue. However, incidents like this could complicate diplomatic and commercial relationships.
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“When companies with no track record win oil blocks over globally recognized operators, that’s a red flag,” said one diplomat stationed in Abuja. “It raises questions not just about corruption, but also about Nigeria’s ability to honor contract sanctity and maintain competitive neutrality.”
Energy sector stakeholders are demanding that the Tinubu government explain how Panout met the minimum bidding standards. Anti-graft organizations, including SERAP and BudgIT, have issued statements calling on the Economic and Financial Crimes Commission (EFCC) to probe the NUPRC over the award.
Meanwhile, Alao Saheed Olatubosun has yet to respond to public queries. Attempts to reach him through his corporate office at Blueprint Business Technology were unsuccessful.
As pressure mounts on the federal government and NUPRC to come clean, this incident has cast a dark cloud over what was billed as a watershed moment in Nigeria’s petroleum licensing history. Until transparency is restored and the gaps in regulatory compliance are addressed, the credibility of the entire 2024 marginal bid round hangs in the balance.
For now, Panout Oil and Gas Limited remains the mystery firm at the center of what could be one of the most controversial oil block awards in recent memory.
Source: SaharaReporters
