A company registered just eight days before Nigeria’s 2024 oil licensing round began secured two oil blocks in what authorities claimed was a “keenly competitive process.” The award has raised major concerns over transparency and regulatory breaches.
According to an investigation by SaharaReporters, Panout Oil and Gas Limited, incorporated on May 6, 2024, won licenses for PPL 300 and PPL 301-CS in December 2024. This happened barely eight months after the firm’s creation and two days before the official bidding launch announced by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) on May 14, 2024, at a roadshow in Miami, Florida.
The Tinubu administration invited applications for 12 oil blocks and seven deep offshore assets, describing the round as a strategic move to boost hydrocarbon development.
Firm’s Incorporation Contradicts NUPRC Guidelines
SaharaReporters uncovered that Panout Oil and Gas Limited had no corporate parent or affiliated entity, despite NUPRC rules requiring new companies to present aggregated shareholder data or parent company records to qualify.
Corporate records from the Corporate Affairs Commission (CAC) show that Alao Saheed Olatubosun owns 100% of the company. No other shareholders appear in the registry, and the company has no known affiliates. Panout also does not appear as a subsidiary of any other firm.
This independent ownership contradicts NUPRC’s stated guideline: “A newly incorporated company shall be qualified only if supported by the parent company or shareholder financial information.”
Unanswered Financial Viability Questions
Further, the commission required firms to present:
- Five years of audited financials
- Statements of profit/loss, equity, cash flow, and management structure
- Proof of funding, including either:
- An average turnover of $200 million for deep offshore, or $50 million for shallow waters
- A bank balance or guarantee of $200 million or $50 million, depending on asset type
- A market capitalisation of $1 billion (deep offshore) or $200 million (onshore)
SaharaReporters found no evidence that Panout submitted these requirements. With only eight months of existence, the company could not have legally produced five years of financial history. Its sole listed owner, Olatubosun, also serves as CEO of Blueprint Business Technology, an IT firm with no visible ties to the oil and gas industry.
A visit to Blueprint’s website yielded no listing of Panout Oil and Gas Limited as a subsidiary or affiliate.
NUPRC Silent on Violations
SaharaReporters tried to contact NUPRC using the 24-hour inquiry number listed on its licensing portal. The line didn’t connect. Text messages sent to the number also received no response.
Despite public claims of a transparent bid process, the Panout case now casts doubt over the integrity of the 2024 licensing round. Industry analysts argue that awarding high-value oil blocks to an entity with no public track record, no demonstrated funding, and no operational history may undermine investor confidence and violate procurement law.
Calls for Accountability
This revelation raises serious questions for both the NUPRC and the Tinubu government. How did a firm with no verified assets, no known technical partners, and no corporate history satisfy the stringent requirements set for oil block applicants?
Analysts and civil society groups may soon demand an independent probe into how Panout qualified for and secured the blocks. Until the commission provides a clear explanation, suspicions of irregularity will persist.