With the June 27 deadline fast approaching, several Nigerian oil companies are in a last-minute scramble to convert their Petroleum Prospecting Licences (PPL) to Petroleum Mining Leases (PML), as mandated by the federal government. Failure to meet this requirement could see more than 40 dormant oil wells repossessed.
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) confirmed that several of the 40 affected companies have already submitted conversion applications. This is part of a wider reform effort in the upstream petroleum sector under the ‘drill or drop’ policy.
According to NUPRC Chief Executive Gbenga Komolafe, “Several operators have applied after fulfilling their minimum work programme obligations as provided under Section 78 of the Petroleum Industry Act 2021.” He added that the applications are currently under review and would be judged based on individual performance and progress made in exploration or appraisal.
The PPLs in question were granted on June 28, 2022, and are set to expire exactly three years later. If the companies fail to show meaningful exploration or a work plan, the government says it will revoke their licences.
“Companies could lose the licences if the regulator is unable to find proof of meaningful exploration or development activities,” warned Professor Emeritus Wumi Iledare, an energy expert.
Among the oilfields at risk are:
Emohua field (OML 22) – EOP Energy
Olua field (OML 25) – Ardogreen Energy
Egbolom field (OML 23) – Ingentia Energies
Alamba field (OML 42) – Atambia E&P
Irigbo field (OML 42) – Energia and Annajul Rosari
Ugbo field (OML 40) – ENEROG Ltd
Bita oil field (OML 95) – Odu’a Investment & Pioneer Global
Kudo field (OML 89) – Transit Oil E&P
Bime field (OML 49) – Deep Offshore Integrated & Virgin Forest
Kurl field (OML 49) – SHN Energy Ltd
Ede field (OML 67) – Ede E&P Ltd
Ekpat field (OML 67) – Duport
Udara field (OML 70) – Oceangate Engineering
Nkuku field (OML 70) – NIPCO E&P Consortium
The federal government has made it clear it will not tolerate dormant assets in an era of declining oil revenues. Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, reaffirmed this stance, saying the government will take over idle wells from companies unable to present a clear work plan.
In related developments, major oil players like Shell and Mobil also risk losing their licences over allegations of diverting crude meant for the local market. The NUPRC has stated that failure to prioritise domestic supply will lead to denied export permits.
As the clock ticks toward the deadline, the fate of dozens of oil licences—and the companies that hold them—hangs in the balance.
