The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has informed over 40 Petroleum Prospecting License (PPL) holders that their licenses are set to expire and outlined the requirements for extension.
To extend their licenses, applicants must pay a $5,000 application fee.
These licenses, granted in 2022 following the conclusion of the 2020 marginal fields bid round, expired on June 27, 2025.
NUPRC’s Chief Executive, Gbenga Komolafe, issued the notification titled “Notification of PPL Tenure Expiration and Conditions for Extension,” reminding companies that their licenses will expire in line with the award terms.
Under Section 77 of the Petroleum Industry Act (PIA) 2021 and the 2022 Regulation on License Extensions, the commission advised companies to request an additional three-year exploration period, provided they have fulfilled the Minimum Work Programme (MWP), financial commitments, and other obligations.
The commission required companies to respond to a June 18 email and submit completed forms by June 23. Companies must formally apply for an extension before the original license term ends.
Applicants must disclose the current status of their work program and the progress made on required activities, such as data gathering, well re-entry, well testing, drilling, and field development plan submission.
NUPRC requested documentation that proves the licensee’s activities since receiving the license and outlines plans for continued work.
The agency also asked for evidence of financial commitments made under the license terms.
Companies must present proof of performance guarantees issued by a CBN-licensed commercial bank with a ‘BBB’ credit rating from at least two rating agencies, one of which must be registered in Nigeria.
Other required documents include proof of establishing a host community development trust, environmental remediation fund, and decommissioning/abandonment fund, as well as confirmation of rental payment for the three-year exploration period.
Licensees must also provide a report summarizing all exploratory and geological work conducted in the licensed area.
Each company must justify the extension request by detailing planned exploration activities and outlining outstanding tasks to be included in a new work program with timelines.
Applicants must indicate the proposed financial commitment for the new work and offer a performance security amount to support it. Lastly, they must show proof of payment of the $5,000 application fee.
NUPRC previously announced that several companies had already applied to convert their Petroleum Prospecting Licenses into Petroleum Mining Leases.
According to the commission’s June Upstream Concession Situation Report, around 40 licenses issued on June 28, 2022, are due to expire on June 27 unless renewed.
For example, EOP Energy, which includes Erebina Energy Resources, Omega-Butter Marginal Fields Ltd., and Intessa Energy Ltd., is at risk of losing the Emohua field of OML 22.
Ardogreen Energy, a joint venture of Ardova Plc and Petrodev, also faces expiration of their Olua field license in OML 25.
Without renewal, Ingentia Energies Limited, formed by Suntrust Oil, Petrogas Energy, and Sonora GTP, may lose access to the Egbolom field of OML 23.
Matrix Energy and Bono Energy, operating the Alamba field in OML 42 through Atambia E&P, face a similar fate. Energia and Annajul Rosari could also lose the Irigbo field in OML 42.
ENEROG Limited, made up of Energia and Sterov Consortium, may no longer operate the Ugbo field in OML 40.
A. A. Rano and Acrete Petroleum could lose their license for the Oloye field in OML 95.
Odu’a Investment Company and Pioneer Global Resource also risk losing the Bita field in OML 95 without ministerial approval.
Transit Oil’s Kudo field in OML 89 is nearing expiration.
Deep Offshore Integrated and Virgin Forest E&P could lose their rights to the Bime field in OML 49.
Platform Petroleum, Shepherdhill, and Nord Oil’s SHN Energy Ltd., currently managing the Kurl field in OML 49, must renew their license or face expiration.
Northwest Petroleum, Genesis Technical, and Gab & Nutella also risk losing the Ede field in OML 67 under Ede E&P Ltd.
Duport’s Ekpat field in OML 67 and Oceangate Engineering Oil’s Udara field in OML 70 are also affected.
The Nkuku field in OML 70, managed by a consortium of NIPCO E&P, Aries Petroco, Vhelberg E&P, Pathway Universal Investment, Grende Oil, and AMG, faces expiration as well.
In line with PIA and related regulations, companies must formally apply to renew or convert their licenses.
NUPRC emphasized that the decision on renewal depends on ongoing consultations with the affected firms.
source: thestreetjournal.org
African Energy Council