The Nigerian Upstream Petroleum Regulatory Commission has said that various licensees have formally applied for the conversion of their Petroleum Prospecting Licences to Petroleum Mining Leases.
This, according to reports, is key to preventing the expiration of about 40 PPLs granted in June 2022.
Speaking via a press statement, the NUPRC clarified the position of the licences, whose expiration date, according to a document on its site, is said to be June 27, 2025.
The Chief Executive of the NUPRC, Gbenga Komolafe, confirmed that while the report was obtained from the commission’s website, it can easily cause unnecessary panic and confusion within the country’s upstream petroleum industry.
According to him, forty PPLs are at different stages of exploration, appraisal, and pre-development, and their applications are currently under review.
Noting that every stage requires different regulatory requirements and timelines, he announced that a lot of the operators have already fulfilled their minimum work programme obligations under Section 78 of the PIA, which qualifies them for extensions.
“The commission clarified that the 40 Petroleum Prospecting Licences referenced in the publication are at different stages of exploration, appraisal and pre-development. Each stage has distinct regulatory requirements and timelines.
Several licensees have formally applied to convert their PPLs into Petroleum Mining Leases, as required by the Petroleum Industry Act 2021. These applications are currently under review,” he said.
The statement reiterated that production commencement is not the sole measure of compliance, stressing that the NUPRC will focus on upholding a vibrant and transparent regulatory regime that will benefit the people of Nigeria.
“The commission firmly asserts its commitment to maintaining an open dialogue while upholding a strong and transparent regulatory regime that benefits all Nigerians,” it 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.
