Nigeria’s Oil Sector Sees Significant Milestone as NUPRC Converts Petroleum Prospecting Licence to Mining Lease

The Nigerian Upstream Petroleum Regulatory Commission has announced a major development in the country’s oil and gas sector, converting Petroleum Prospecting Licence 202 to Petroleum Mining Lease 66.

This milestone marks the first conversion under the Petroleum Industry Act 2021 and underscores Nigeria’s position as a prime destination for oil and gas investments.

NUPRC Chief Executive, Gbenga Komolafe, highlighted that the conversion demonstrates the value of the 2020 Marginal Field Bid Round and the resilience of Nigeria’s upstream sector.

The licence holders, including Suntrust Oil Company Nigeria Limited, Petrogas Energy Trade W.A Ltd, Somora GTP Limited, Moore Oil Exploration & Production Nig Ltd, and Genesis Hydrocarbons Limited, have successfully fulfilled their work programs, paving the way for the conversion.

According to Komolafe, the conversion sends a strong signal to investors about Nigeria’s commitment to regulatory clarity, commercial viability, and operational excellence. Ingentia Energies, the Special Purpose Vehicle created by the licence holders, plans to significantly ramp up production.

The company’s Managing Director, Olajumoke Ajayi, disclosed that they expect to increase production by up to 7,500 barrels of oil per day by the end of the first quarter of 2026.

Ajayi also pledged Ingentia’s support for the government’s efforts to raise national crude production by one million barrels per day under President Bola Tinubu’s administration.

The successful conversion highlights the transformative potential of the Petroleum Industry Act and its role as a business enabler in Nigeria’s petroleum sector.