The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has confirmed that several holders of Petroleum Prospecting Licences (PPLs) have formally applied to convert their licences into Petroleum Mining Leases (PMLs) a move seen as crucial in averting the imminent expiration of about 40 licences granted in June 2022.
The commission clarified this in a statement issued over the weekend following concerns sparked by a document on its website indicating that the licences would expire on June 27, 2025. The document, which has circulated within the industry, raised fears over the potential loss of critical upstream assets awarded during the 2020 Marginal Field Bid Round.
Responding, NUPRC Chief Executive Gbenga Komolafe stated that while the information came from the commission’s portal, it had been misinterpreted, possibly causing unnecessary alarm across the oil and gas sector.
“The 40 Petroleum Prospecting Licences referenced are at various stages ranging from exploration to appraisal and pre-development. Each stage is governed by specific regulatory requirements and timelines,” Komolafe said.
He added that numerous licensees had already applied for conversion in line with the Petroleum Industry Act (PIA) 2021, and that those applications are currently under review.
According to the NUPRC, many of the licence holders have met their minimum work programme obligations, as required by Section 78 of the PIA, making them eligible for conversion or extension. The commission also emphasized that production output is not the sole benchmark for regulatory compliance, and that the process remains transparent and aligned with national interest.
Licences Approaching Expiry
A May 2025 Upstream Concession Situation Report by the NUPRC listed multiple marginal field operators whose PPLs are nearing expiration. These include:
- EOP Energy (Emohua field, OML 22) — consortium of Erebina Energy, Omega-Butter, and Intessa Energy
- Ardogreen Energy (Olua field, OML 25) — joint venture of Ardova Plc and Petrodev
- Ingentia Energies (Egbolom field, OML 23) — comprising Suntrust Oil, Petrogas Energy, Sonora GTP
- Atambia E&P (Alamba field, OML 42) — run by Matrix Energy and Bono Energy
- Energia & Annajul Rosari (Irigbo field, OML 42)
- ENEROG Ltd (Ugbo field, OML 40) — Energia and Sterov Consortium
- A.A. Rano & Acrete Petroleum (Oloye field, OML 95)
- Odu’a Investment & Pioneer Global Resources (Bita field, OML 95)
- Transit Oil (Kudo field, OML 89)
- Deep Offshore Integrated & Virgin Forest E&P (Bime field, OML 49)
- SHN Energy Ltd (Kurl field, OML 49) — Platform Petroleum, Shepherdhill, Nord Oil
- Ede E&P Ltd (Ede field, OML 67) — Northwest Petroleum, Genesis Technical, Gab & Nutella
- Duport Midstream (Ekpat field, OML 67)
- Oceangate Engineering (Udara field, OML 70)
- Nkuku field, OML 70 — operated by a consortium including NIPCO E&P, Aries Petroco, Vhelberg, Grende Oil, AMG
The PIA provides for an optional licence extension of three to five years, depending on the field terrain and the operator’s performance. However, renewal is not automatic it hinges on demonstrated development progress, as reinforced by the NUPRC.
FG Push for Accountability
Federal Government has reiterated its “drill or drop” stance to reduce unproductive licence holding. Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, declared that idle oil assets will be revoked and reassigned if licence holders fail to meet their development obligations.
“Out of about 60 marginal field licence holders from the last bid round, only a handful perhaps four or five have reached the production stage,” the minister said.
“Licences that aren’t backed by work plans and investment are just paperwork. If a company can’t raise funding or execute its plan, it’s better those assets are reassigned.”
Lokpobiri stressed that he would not be swayed by personal relationships or lobbying when it comes to enforcement decisions.
“I don’t need to know you to renew or sign your licence, and I won’t hesitate to cancel it if you’re holding it without progress.”
With the PPLs nearing their expiration window and regulatory scrutiny intensifying, the coming months are expected to be decisive for many marginal field operators. The NUPRC has pledged to maintain open channels of engagement with stakeholders while ensuring compliance with national petroleum laws.
