The Nigerian Upstream Petroleum Regulatory Commission says several licensees have formally applied for the conversion of their Petroleum Prospecting Licences to Petroleum Mining Leases.

This, it was learnt, became necessary to prevent the expiration of about 40 PPLs granted in June 2022. The NUPRC made this known in a statement clarifying the position of the licences whose expiration date, according to a document on its website, was said to be June 27, 2025.

In the statement, the Chief Executive of the NUPRC, Gbenga Komolafe, confirmed that the report was obtained from the commission’s website, saying, however, that it “is capable of causing unnecessary panic and confusion within Nigeria’s upstream petroleum industry.”

According to Komolafe, the 40 PPLs were at different stages of exploration, appraisal, and pre-development, saying their applications were under review. He stated that each stage had different 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 statement explained that many of the operators have already fulfilled their minimum work programme obligations under Section 78 of the PIA, qualifying them for extensions.

It was emphasised that production commencement was not the sole measure of 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.

The PUNCH reports that a document by the NUPRC showed that about 40 oil licences would expire this month, except the necessary steps are taken to prevent it.

According to the Nigerian Upstream Petroleum Regulatory Commission’s Upstream Concession Situation Report in May, the licences, which were granted to different companies on June 28, 2022, would expire on June 27, 2025.

They include the petroleum prospecting licences granted to oil companies after the completion of the 2020 marginal fields bid round. The NUPRC earlier told our correspondent that the law provided for an optional extension of three or five years; however, the extension would depend on the company’s performance.

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.

It was also gathered that Deep Offshore Integrated and Virgin Forest E&P’s licence to run the Bime field in OML 49 is included. Platform Petroleum, Shepherdhill, and Nord Oil’s SHN Energy Ltd are currently the operators of the Kurl field in OML 49, but the licence expires soon.

Our correspondent reports that the licence issued to Northwest Petroleum, Genesis Technical, and Gab & Nutella to operate the Ede field of OML 67 under Ede E&P Ltd is also affected. Duport’s Ekpat field in OML 67 is also involved, as well as Oceangate Engineering Oil’s Udara field in OML 70.

Nkuku field of OML 70, being operated by NIPCO E&P, Aries Petroco Resources, Vhelberg E&P, Pathway Universal Investment, Grende Oil, and AMG, is also affected.

According to the document sourced from the NUPRC website, it was stated in accordance with the PIA and other regulations that an application shall be made to the commission for renewal of an oil mining lease or conversion under certain regulations.

The NUPRC told our correspondent that the law provides for an optional extension of three or five years, depending on the terrain. However, the extension will depend on the company’s performance.

It was stated that the renewal or otherwise depends on the result of an ongoing engagement with these companies. An energy expert, Professor Emeritus Wumi Iledare, said the renewal of the licences is only likely if meaningful exploration or development activities have been undertaken.

According to Iledare, where such activities are absent, renewal becomes increasingly unlikely. After scrutiny of the NUPRC data, Iledare said the licenses are primarily Petroleum Prospecting Licenses governed by the stipulations of the Petroleum Industry Act. He stated that each licence comes with a predetermined expiration or relinquishment date.

Meanwhile, the Federal Government had made known its determination to revoke all dormant oil assets. Worried by the country’s dwindling oil revenue, the Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, said the ‘drill or drop’ policy would be implemented, saying the government would take over all idle oil wells from operators holding on to them.

The minister disclosed that out of about 60 companies that got approvals in the last marginal bid round, only a few had started production, saying he would not hesitate to cancel unused licences.

“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.