The Nigerian Upstream Petroleum Regulatory Commission has confirmed that several holders of Petroleum Prospecting Licences have submitted formal applications to convert their licences to Petroleum Mining Leases.
This development comes as about 40 PPLs issued in June 2022 approach their expiration date of June 27, 2025.
Thid was disclosed in a statement by NUPRC, clarifying the position of the licences whose expiration date, according to a document on its website, was said to be June 27, 2025.
In a statement, NUPRC Chief Executive Gbenga Komolafe acknowledged that the report highlighting the expiry timeline was based on information from the commission’s website.
However, he cautioned that the report could cause unnecessary panic and confusion in the upstream sector.
Komolafe said that the 40 PPLs are currently at various stages of exploration, appraisal, and pre-development.
He explained that the conversion applications submitted by the licensees are under review by the commission.
“The commission clarified that the 40 Petroleum Prospecting Licences 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, as required by the Petroleum Industry Act 2021. These applications are currently under review,” he noted.
The statement also noted that several operators have met the minimum work programme requirements outlined in Section 78 of the Petroleum Industry Act (PIA). By satisfying these obligations, they are eligible for licence conversions or potential extensions, in line with regulatory provisions.
According to the Nigerian Upstream Petroleum Regulatory Commission’s Upstream Concession Situation Report for May, the petroleum prospecting licences issued to various companies on June 28, 2022, are set to expire on June 27, 2025.
These licences were awarded following the 2020 marginal fields bid round, aimed at increasing indigenous participation in Nigeria’s oil and gas sector.
The NUPRC earlier explained that under the Petroleum Industry Act (PIA) 2021, companies may apply for an optional extension of three or five years, depending on their performance. The extension is not automatic and will be based on the operator’s ability to meet key benchmarks.
It was shown from the NUPRC data that the licence to operate the Emohua field of OML 22 by EOP Energy will expire this month. EOP Energy comprises Erebina Energy Resources Limited, Omega-Butter Marginal Fields Ltd, and Intessa Energy Ltd. In the same vein, Ardova Plc and Petrodev’s approval to operate the Olua field of OML 25 through Ardogreen Energy will expire at the same time.
Ingentia Energies Limited, made up of Suntrust Oil Company, Petrogas Energy, and Sonora GTP Ltd, may lose the Egbolom field of OML 23 without renewal. Unless renewed, Matrix Energy and Bono Energy Limited’s Atambia E&P will cease to be the operators of the Alamba field of OML 42, while Energia and Annajul Rosari will lose the Irigbo field in the same OML 42.
ENEROG Limited, comprising Energia and Sterov Consortium, may also lose its licence to produce oil from the Ugbo field of OML 40. It was reported that A. A. Rano and Acrete Petroleum’s licence to operate the Oloye field of OML 95 was also affected.
Similarly, Odu’a Investment Company and Pioneer Global Resource & Integrated Energy Ltd may cease to be the operators of the Bita oil field under OML 95 without the approval of the minister. Transit Oil’s Kudo field in OML 89 will also expire in June.
