Nigerian Oil Companies Rush To Convert Licences As The June 27 Deadline Draws Nearer

• As part of the reforms going on in the Nigerian Upstream petroleum sector, the government declared that all dormant oil wells would be repossessed
• This directive puts about 40 Nigerian oil companies at risk of losing their licences after the expiration in June 2025
• The affected companies are taking steps to prevent the loss of their licences as the deadline draws closer

Legit.ng journalist Ruth Okwumbu-Imafidon has over a decade of experience in business reporting across digital and mainstream media.

Ahead of the 27 June 2025 deadline, several Nigerian oil companies are looking to convert their Petroleum Prospecting Licences (PPL) to Petroleum Mining Leases (PML).

According to the Nigerian Upstream Petroleum Regulatory Commission (NUPRC)’s Upstream Concession Situation Report in May, about 15 licences granted on 28 June 2022 would expire on 27 June 2025.

NUPRC has confirmed that several of the 40 companies affected have applied to have their licences converted.

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These applications, if granted, will prevent the expiration of about 40 Petroleum Prospecting Licences granted on 28 June 2022.

FG gives conditions to renew affected licences

According to the Chief Executive of the NUPRC, Gbenga Komolafe, the applications are under review as the 40 PPLs are at different stages of exploration and appraisal, with different regulatory timelines and requirements.

He referenced the report on the NUPRC website and stated that several operators have applied after fulfilling their minimum work programme obligations as provided under Section 78 of the Petroleum Industry Act 2021.

NUPRC has said that the extension of these licences for a period of three or five years would depend on the company’s performance, the PUNCH reports.

Explaining this comment, an energy expert, Professor Emeritus Wumi Iledare, said that the oil companies could lose the licences if the regulator is unable to find proof of meaningful exploration or development activities.

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List of oil fields licences to be affected

According to the data on the NUPRC website, the licences to expire include;

1. Licence to operate the Emohua field of OML 22 owned by EOP Energy (comprising Erebina Energy Resources Limited, Omega-Butter Marginal Fields Ltd, and Intessa Energy Ltd.)
2. Licence to operate the Olua field of OML 25 owned by Ardogreen Energy (comprising Ardova Plc and Petrodev)
3. Licence to operate the Egbolom field of OML 23 owned by Ingentia Energies Limited (comprising Suntrust Oil Company, Petrogas Energy, and Sonora GTP Ltd)
4. Licence to operate the Alamba field of OML 42 owned by Atambia E&P (comprising Matrix Energy and Bono Energy Limited)
5. Licence to operate the Irigbo field of OML 42 owned by Energia and Annajul Rosari.
6. Licence to operate the Ugbo field of OML 40 by ENEROG Limited, comprising Energia and Sterov Consortium.
7. Licence to operate the Oloye field of OML 95 owned by A. A. Rano and Acrete Petroleum
8. Licence to operate the Bita oil field under OML 95 owned by Odu’a Investment Company and Pioneer Global Resource & Integrated Energy Ltd.
9. Licence to operate the Kudo field in OML 89 owned by Transit Oil.
10. E & P Licence to operate the Bime field in OML 49 owned by Deep Offshore Integrated and Virgin Forest E&P
11. Licence to operate Kurl field in OML 49, owned by SHN Energy Ltd, comprising Platform Petroleum, Shepherdhill, and Nord Oil.
12. Licence to operate the Ede field of OML 67 under Ede E&P Ltd, comprising Northwest Petroleum, Genesis Technical, and Gab & Nutella.
13. Licence to operate the Ekpat field in OML 67, owned by Duport.
14. Licence to operate Udara field in OML 70 owned by Oceangate Engineering Oil.
15. Licence to operate the Nkuku field of OML 70, being held by NIPCO E&P, Aries Petroco Resources, Vhelberg E&P, Pathway Universal Investment, Grende Oil, and AMG.

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FG to revoke dormant oil licences

Note that the federal government has reiterated its intention to revoke all dormant oil licences, as a way to address the low oil revenues.

The Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, stated that the government would take over more than 40 idle oil wells from their operators, under the ‘drill or drop’ policy, unless they can present a work plan.

FG to revoke licences of Shell, others

In related news, the Nigerian government has threatened to revoke the licences of Shell, Mobil and other foreign oil firms.

Legit.ng reported that the oil companies were accused of diverting crude oil meant for local consumption.

NUPRC warned that it will deny oil exploration and production companies permits for oil export if they fail to prioritise the local market.

Source: Legit.ng