At least 40 Nigerian oil companies are at risk of losing their operational licences by June 2025 unless the Minister of Petroleum approves their renewal in accordance with the Petroleum Industry Act (PIA).
These licences, many of which were granted for marginal fields following the 2020 bid round, are due to expire on June 27, 2025, exactly three years after they were issued.According to the Nigerian Upstream Petroleum Regulatory Commission’s (NUPRC) latest Upstream Concession Situation Report, extensions of either three or five years may be granted based on company performance and compliance.
“The law provides for an optional extension of three or five years, depending on the terrain. The extension will depend on the company’s performance, the result of ongoing engagement, and the guidelines we are working on,” said Olaide Sonola, NUPRC’s Corporate Affairs Manager.
The marginal field programme, launched in the 1990s, was designed to give Nigerian indigenous oil and gas companies a stronger stake in the sector. The 2020 bid round saw 57 fields awarded to several companies including Matrix Energy, AA Rano, Ardova Plc, Duport Midstream, and Twin Summit, among others.
Some affected firms include EOP Energy, whose licence to operate the Emohua field in OML 22 is set to expire. Similarly, Ardogreen Energy—a joint venture between Ardova Plc and Petrodev—faces the same deadline for the Olua field in OML 25.
NUPRC is currently holding consultations with licence holders to determine eligibility for renewal. Sonola confirmed, “The outcome of ongoing engagements with these companies will determine whether their contracts are renewed.”
Meanwhile, the federal government has reiterated its commitment to enforcing the “drill or drop” provisions of the PIA starting in 2025. Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, previously warned that the government may revoke licences from companies that fail to develop their oil blocks.
This push comes as Nigeria targets an ambitious production goal of 2.06 million barrels of oil per day, urging both local and foreign companies to ramp up investments in the sector.
