Nigeria Faces Critical Oil License Deadline as 40 Permits Set to Expire
The Nigerian Upstream Petroleum Regulatory Commission has revealed that several oil companies are scrambling to convert their Petroleum Prospecting Licences to Petroleum Mining Leases as approximately 40 licenses approach their June 27, 2025 expiration date.
NUPRC Chief Executive Gbenga Komolafe confirmed that the 40 Petroleum Prospecting Licences are at different stages of exploration, appraisal, and pre-development, with each stage having distinct regulatory requirements and timelines. Several licensees have formally applied for conversion to Petroleum Mining Leases as required by the Petroleum Industry Act 2021, and these applications are currently under review.
Many operators have already fulfilled their minimum work programme obligations under Section 78 of the PIA, qualifying them for extensions. The commission emphasized that production commencement is not the sole measure of compliance and maintains its commitment to transparent regulatory practices.
Among the affected licenses are high-profile operations including EOP Energy’s Emohua field of OML 22, Ardova Plc and Petrodev’s Olua field operations, and various fields operated by companies like Matrix Energy, Energia, and ENEROG Limited. The licenses were originally granted to different companies on June 28, 2022, following the completion of the 2020 marginal fields bid round.
Minister of State for Petroleum Resources Heineken Lokpobiri has implemented a “drill or drop” policy, warning that the government will not hesitate to cancel unused licenses. Out of approximately 60 companies that received approvals in the last marginal bid round, only three to five have started production.
Source: Punch Nigeria