FG gives terms for oil licence renewal as operators rush to comply, see full list of affected companies

• As portion of the reforms going connected successful the Nigerian Upstream petroleum sector, the authorities declared that each dormant lipid wells would beryllium repossessed
• This directive puts astir 40 Nigerian lipid companies astatine hazard of losing their licences aft the expiration successful June 2025
• The affected companies are taking steps to forestall the nonaccomplishment of their licences arsenic the deadline draws closer

Legit.ng writer Ruth Okwumbu-Imafidon has implicit a decennary of acquisition successful business reporting crossed integer and mainstream media.

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

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

NUPRC has confirmed that respective of the 40 companies affected person applied to person their licences converted.

The companies are trying to alteration their prospecting licence to mining leases to conscionable the information for renewal. Photo credit: VCG
Source: Twitter

These applications, if granted, volition forestall the expiration of astir 40 Petroleum Prospecting Licences granted connected 28 June 2022.

FG gives conditions to renew affected licences

According to the Chief Executive of the NUPRC, Gbenga Komolafe, the applications are nether reappraisal arsenic the 40 PPLs are astatine antithetic stages of exploration and appraisal, with antithetic regulatory timelines and requirements.

He referenced the study connected the NUPRC website and stated that respective operators person applied aft fulfilling their minimum enactment programme obligations arsenic provided nether Section 78 of the Petroleum Industry Act 2021.

NUPRC has said that the hold of these licences for a play of 3 oregon 5 years would beryllium connected the company’s performance, the PUNCH reports.

Explaining this comment, an energy expert, Professor Emeritus Wumi Iledare, said that the lipid companies could suffer the licences if the regulator is incapable to find impervious of meaningful exploration oregon improvement activities.

List of lipid fields licences to beryllium affected

According to the information connected the NUPRC website, the licences to expire include;

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

FG to revoke dormant lipid licences

If the companies are incapable to amusement a enactment program oregon impervious of activity, they could suffer the lipid licence. Photo credit: Contributor
Source: Getty Images

Note that the national authorities has reiterated its volition to revoke all dormant lipid licences, arsenic a mode to code the debased lipid revenues.

The Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, stated that the authorities would instrumentality implicit much than 40 idle lipid wells from their operators, nether the ‘drill oregon drop’ policy, unless they can contiguous a enactment plan.

FG to revoke licences of Shell, others

In related news, the Nigerian authorities has threatened to revoke the licences of Shell, Mobil and different overseas lipid firms.

Legit.ng reported that the lipid companies were accused of diverting crude lipid meant for section consumption.

NUPRC warned that it volition contradict lipid exploration and accumulation companies permits for lipid export if they neglect to prioritise the section market.

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Source: Legit.ng