New Telegraph

February 26, 2024

FG To Revoke Unused Oil Exploration Leases

The Nigerian Upstream Petroleum and Regulatory Commission (NUPENG) has disclosed the Federal Government’s plan to revoke unused oil exploration leases.

This was contained in a press statement issued by the Chief Executive Officer, NUPENG, Gbenga Komolafe, on Monday, saying the Federal Government would take back leases to companies who have not been able to carry out any exploration activities since they were granted the leases.

Komolafe said that the Federal Government is prioritising technically and financially viable companies under the Petroleum Industry Act, with over 60% of issued licenses having expired.

According to him, it is only those companies who have a viable technical and financial backup that would get to keep their leases.

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Komolafe said that the Federal Government is prioritising technically and financially viable companies under the Petroleum Industry Act, with over 60% of issued licenses having expired.

According to him, it is only those companies who have a viable technical and financial backup that would get to keep their leases.

“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,” Komolafe said.

“The commission would initiate reviews of these leases and awards of new leases would be subject to specific terms and conditions.”

Recent data released by the NUPRC showed that, although about 53 exploration leases were issued from the year 2003 till date, more than 60 per cent of the prospecting licenses issued to local and foreign oil companies had expired.

Out of the 53 licences, a total number of 33 have since expired and have not been renewed out of which four which are currently being held down by contractual disagreement.

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