The Nigerian Upstream Petroleum Regulatory Commission has written to holders of around 40 Petroleum Prospecting Licences in Nigeria, notifying them of licence expiration and stating the conditions for extension.
The letter was recently sent to affected PPL holders, and Nigerians have been reacting.
In the letter signed by NUPRC, Chief Executive Officer Gbenga Komolafe revealed that extending the validity of a PPL license would cost $5,000 as an application fee.
According to him, the PPL was approved on the 28th of June, 2022, and expired on Thursday, 27th June, 2025, in accordance with the terms of the award of the licence.
“Further to the award of a Petroleum Prospecting Licence to your company during the 2020 Marginal Field Bid Round, a review of our records indicates that the PPL will expire on 27th June 2025, which is in line with the terms of the award of the licence,” he said.
NUPRC also stated that other requirements for the PPL extension include proof of submission of a work performance guarantee for the initial 3-year exploration period, and it must be issued by a commercial bank duly licensed by the Central Bank of Nigeria.
The commission insisted that the CBN license must come with a minimum credit rating of “BBB” issued by at least 2 rating agencies, one of which must be a rating agency incorporated in Nigeria and registered with the Securities and Exchange Commission.
Gbenga further noted that the application for extension must be justifiable, with detailed reasons expected to include proposed exploratory and geological work programmes, in addition to the outstanding activities to be reclassified and implemented as part of a new work programme during the extension period, with clear timelines.
“Proposed value of the performance security to guarantee the financial commitment during the proposed extension period. Evidence of payment of the five thousand United States dollars application fee,” he added.
Folami David is a dynamic journalist who views the world through an analytical lens, translating complex narratives across multiple industries into compelling stories. With an insatiable appetite for information and a keen eye for emerging trends, Folami specializes in uncovering the interconnections between technology, business, culture, and society.
