Several Nigerian oil companies are racing to convert their Petroleum Prospecting Licences (PPLs) to Petroleum Mining Leases (PMLs) before they expire, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has revealed.
According to the Commission, many licence holders have already submitted formal applications for conversion in a bid to avoid the expiration of approximately 40 PPLs issued in June 2022. The NUPRC clarified this in a recent statement addressing concerns about the impending expiry date—June 27, 2025—as published in a document on its official website.
The Commission’s Chief Executive, Gbenga Komolafe, acknowledged that the information originated from the Commission’s website but cautioned that it “is capable of causing unnecessary panic and confusion within Nigeria’s upstream petroleum industry.”
Komolafe explained that the 40 PPLs are currently at various stages of exploration, appraisal, and pre-development. He stressed that these different phases are subject to distinct regulatory requirements and timelines.
“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 NUPRC also indicated that many operators had already fulfilled their minimum work programme obligations under Section 78 of the Petroleum Industry Act (PIA), making them eligible for extensions. The Commission further emphasised that beginning production was not the only benchmark for regulatory compliance.
“The commission firmly asserts its commitment to maintaining an open dialogue while upholding a strong and transparent regulatory regime that benefits all Nigerians,” the statement said.
A separate NUPRC document confirmed that unless proactive steps are taken, about 40 licences granted on June 28, 2022, will lapse by June 27, 2025. These include licences awarded following the 2020 marginal fields bid round.
While the PIA allows for an optional extension of three or five years, depending on terrain, the NUPRC told our correspondent that such extensions would depend on each company’s performance.
NUPRC data shows that the licence to operate the Emohua field in OML 22 by EOP Energy—comprising Erebina Energy Resources Limited, Omega-Butter Marginal Fields Ltd, and Intessa Energy Ltd—will expire this month. Similarly, the licence granted to Ardova Plc and Petrodev to operate the Olua field in OML 25 through Ardogreen Energy will also expire.
Ingentia Energies Limited, made up of Suntrust Oil Company, Petrogas Energy, and Sonora GTP Ltd, is at risk of losing the Egbolom field in OML 23 if no renewal occurs. Matrix Energy and Bono Energy Limited’s Atambia E&P may cease to operate the Alamba field in OML 42, while Energia and Annajul Rosari could lose the Irigbo field, also in OML 42.
ENEROG Limited—a consortium of Energia and Sterov—may forfeit its right to operate the Ugbo field in OML 40. Similarly, A. A. Rano and Acrete Petroleum’s licence for the Oloye field in OML 95 is on the line.
Other fields facing possible expiry include the Bita oil field in OML 95, jointly held by Odu’a Investment Company and Pioneer Global Resource & Integrated Energy Ltd, and Transit Oil’s Kudo field in OML 89.
Also affected are the Bime field in OML 49, operated by Deep Offshore Integrated and Virgin Forest E&P; the Kurl field in the same OML operated by SHN Energy Ltd (Platform Petroleum, Shepherdhill, and Nord Oil); and the Ede field in OML 67 operated by Ede E&P Ltd—comprising Northwest Petroleum, Genesis Technical, and Gab & Nutella.
Duport’s Ekpat field in OML 67 and Oceangate Engineering Oil’s Udara field in OML 70 are similarly impacted. The Nkuku field in OML 70, operated by a joint venture including NIPCO E&P, Aries Petroco Resources, Vhelberg E&P, Pathway Universal Investment, Grende Oil, and AMG, is also under threat.
According to the NUPRC’s website, companies must submit an application for lease renewal or conversion as stipulated under the PIA and related regulations.
The Commission reiterated that extensions of three or five years are possible depending on the location of the field, but performance remains the key determinant.
“The renewal or otherwise depends on the result of an ongoing engagement with these companies,” the NUPRC said.
Professor Emeritus Wumi Iledare, an energy expert, commented that renewal is only feasible if the companies have demonstrated tangible exploration or development progress.
According to him, “where such activities are absent, renewal becomes increasingly unlikely.” He also noted that most of the affected assets are Petroleum Prospecting Licences governed by the PIA, each with clearly defined expiration or relinquishment dates.
Meanwhile, the Federal Government has reaffirmed its intention to revoke all dormant oil assets. With national oil revenues under pressure, the Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, declared the government’s commitment to enforcing the ‘drill or drop’ policy, which targets idle oil wells.
“I don’t need to know you to renew or sign your licence, and I will also not look at your face to cancel it. Out of those who benefited from the last marginal bid round, out of about 60, maybe only about three or four or five have started producing.
“Their licences will expire soon because it is for three years, and renewable for another three years. But the condition is that you have a work plan. If you don’t follow your work plan, I also have the discretion to cancel it. If somebody has the marginal oil licence and doesn’t have the capacity to raise funding, you’re just impoverishing him,” he mentioned.
