The federal government, through the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) is considering revoking licenses of oil and gas companies holding vast swathes of undeveloped oil assets. The move is expected to have significant implications for the country's energy sector. This was made public by the Chief Executive Officer, Nigerian Upstream Petroleum Regulatory Commission, Gbenga Komolafe, on Monday.
“Based on the Petroleum Industry Act, the commission is focused on delivering value for the nation so only technically and financially viable firms will keep their leases,” Gbenga Komolafe, Chief Executive Officer of the Commission, told Reuters on Monday.
According to the latest data from the NUPRC, although about 53 exploration leases were issued from 2003 till date; over 60 per cent of the prospecting licenses issued to local and foreign oil firms had expired and not been renewed. The leases have not been automatically revoked, but the regulator is no longer willing to let the companies hold on to leases indefinitely.
The PIA enacted in 2021 empowered the regulator to review the technical and financial capabilities of companies holding oil exploration leases.
