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Home Business Tinubu, Nigeria’s Petroleum Minister to Approve 10-Month-old Tech Firm as Winner of Oil Block Bid – Outbids Major Companies.

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Tinubu, Nigeria’s Petroleum Minister to Approve 10-Month-old Tech Firm as Winner of Oil Block Bid – Outbids Major Companies.

Mayowa DurosinmiMarch 25, 20251 Mins read445

The unexpected success of a Lagos-based technology firm in Nigeria’s oil block bidding has sparked speculation about the federal government’s influence in the sector. Panout Oil & Gas Ltd., a newly registered energy firm, was incorporated just days before the government announced the 2024 oil licensing round in May.

Corporate records reviewed by Bloomberg show that Saheed Alao, CEO of Lagos-based IT powerhouse Blueprint Business Technologies Ltd, owns the company. Both businesses operate from Awolowo Road in Ikoyi. Surprisingly, The firm secured three oil blocks in December, including the highly contested Production Prospecting Licences (PPL) 300 and 301 and the deepwater block PPL 3015.

This victory, achieved by outbidding industry giants like TotalEnergies and Chevron, has raised eyebrows among observers who question how a newly formed company defeated long-established multinationals.

However, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) defended the process. According to the agency, the selection prioritised firms with clear development plans over those seeking to hold assets for speculation.

Since Nigeria’s President, Bola Tinubu, is also the Petroleum Minister, some citizens suspect Panout’s success may be linked to his influence. A viral comment on social media platform X read, “Don’t bother asking who is behind the company. You already know. You were warned. ” The controversy has raised fresh concerns over transparency in the oil sector.

The 2024 licensing round, launched in May, offered 24 oil blocks across onshore, shallow water, and deep offshore terrains. The bidding round saw several other major victories, including Petroli Energy Marketing & Supply Limited securing PPL 269 after defeating AFAGAF Company. Sahara Deepwater Resource Limited dominated with wins for PPL 270 and PPL 271. TotalEnergies E&P Nigeria claimed PPL 2000/2001 after outbidding Star Deepwater & Petroleum Limited.

As the country awaits the official issuance of licences, Tinubu is expected to oversee the final approval ceremony in Abuja. Meanwhile, the NUPRC plans to launch another bidding round 2025, focusing on discovered but undeveloped fields.