The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has informed over 40 oil companies that their Petroleum Prospecting Licences (PPLs) will expire on June 27, 2025, unless they meet specific conditions to qualify for an extension.

The affected firms, many of whom received licences during the 2020 Marginal Field Bid Round, have been asked to pay a $5,000 application fee and submit detailed documentation proving they met the obligations tied to their original licence awards.

According to the regulator, companies must present evidence of completed exploration tasks such as drilling, data collection, and well testing. They must also submit records of their financial commitments and show they’ve fulfilled other responsibilities like setting up environmental and host community trust funds.

In addition, firms are required to provide a new exploration work plan with timelines, details of expected expenses, and a guarantee of funding, backed by banks rated ‘BBB’ or higher and licensed by the Central Bank of Nigeria.

The commission emphasized that without proof of performance and compliance, no extension would be granted. It also warned that failure to act before the expiration date could lead to the loss of the operating rights on the assigned oil fields.

Several joint venture companies risk losing control of major fields across oil mining leases such as OML 22, 25, 40, 42, 49, 67, 70, 89, and 95. These include operators like EOP Energy, Ardogreen Energy, Energia, Atambia E&P, SHN Energy Ltd, and others.

While some companies have already applied to convert their licences to Petroleum Mining Leases, the NUPRC says renewals or conversions will only proceed based on each company’s performance and regulatory compliance.

The commission’s June report highlights that all 40 licences were issued in June 2022, with a three-year validity period that ends this week. Only companies that have fulfilled their obligations and submitted renewal requests in time will be considered for the optional extension period.