December 12, (THEWILL) – The Federal Government has disclosed plans to cancel oil exploration licences granted to companies but remain unused without any exploration activities.
A check by THEWILL on recent data from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) reveals that over 60 percent of the 53 prospecting licenses granted to both local and foreign oil companies have lapsed. While 33 have already expired and remain unrenewed, four are said to be entangled in contract disputes.
Although the licenses have not been automatically revoked, the enactment of the Petroleum Industry Act (PIA) in 2021 empowered the NUPRC to assess the technical and financial capabilities of companies holding oil exploration leases.
In this regard, Chief Executive Officer of NUPRC, Gbenga Komolafe, said the regulatory body is no longer inclined to allow companies to retain these leases indefinitely.
Komolafe said only companies possessing both viable technical expertise and financial support would retain their licenses.
“Based on PIA (Petroleum Industry Act), the commission is focused on delivering value for the nation, so only firms that are technically and financially viable will keep their leases,” he said, adding that the commission would initiate reviews of these leases, and awards of new leases would be “subject to specific terms and conditions.”
