Nigerian Oil Firms Face Major Licence Threat as 40 Fields at Risk

Nigerian Oil Firms Face Major Licence Threat as 40 Fields at Risk

Nigerian oil firms are now in a frantic race against time. Nearly 40 of them risk losing control over their oil fields if they don’t meet a key government deadline set for June 27, 2025.

These firms, holding Petroleum Prospecting Licences (PPLs), must convert them into Petroleum Mining Leases (PMLs) before the deadline or face a harsh consequence—the total loss of their rights to drill. This push comes as part of the government’s larger effort to clean up the upstream oil sector, which has long suffered from dormant fields and unrealised production goals.

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has sounded the alarm. Its recent concession report confirmed that 15 licences granted on June 28, 2022, are set to expire by June 27, 2025. In total, around 40 companies are affected.

Gbenga Komolafe, the Chief Executive Officer of the NUPRC, said the Commission is currently reviewing several applications from firms hoping to convert their licences. These firms are under pressure to show progress and proof of development work or risk losing it all.

“We’re reviewing applications submitted by several operators,” Komolafe explained. “They’ve met the minimum work programme obligations required under Section 78 of the Petroleum Industry Act 2021.”

This section of the law demands that licence holders make visible progress in exploring or developing their oil blocks. If not, the licence becomes subject to cancellation.

And that’s not just a threat on paper.

In fact, the federal government, through its ‘drill or drop’ policy, is ready to repossess any oil field that remains idle. Heineken Lokpobiri, Minister of State for Petroleum Resources (Oil), confirmed the government’s seriousness. He stated that Nigeria cannot continue to suffer low oil revenues while private firms sit on unused oil fields.

“This administration will not tolerate dormancy,” he said. “Over 40 idle oil wells are on the radar. If operators don’t show clear activity or a proper work plan, we will take back those wells.”

The race is personal for many small and mid-sized firms. For some, it’s about saving millions in investments. For others, it’s about survival.

One of the licences flagged is for the Emohua field of OML 22. It belongs to EOP Energy, a joint group made up of Erebina Energy Resources Ltd, Omega-Butter Marginal Fields Ltd, and Intessa Energy Ltd. These companies are still trying to push forward with field development, but the clock is ticking.

Another is the Olua field of OML 25, controlled by Ardogreen Energy—a joint operation between Ardova Plc and Petrodev. Just like others, they’ve also filed applications to convert their PPLs, hoping to keep their operations alive beyond the June deadline.

In total, the list includes:

Egbolom field of OML 23 – Ingentia Energies Limited (Suntrust Oil Company, Petrogas Energy, Sonora GTP Ltd)

Alamba field of OML 42 – Atambia E&P (Matrix Energy, Bono Energy Ltd)

Irigbo field of OML 42 – Energia, Annajul Rosari

Ugbo field of OML 40 – ENEROG Ltd. (Energia, Sterov Consortium)

Oloye field of OML 95 – A. A. Rano, Acrete Petroleum

Bita field under OML 95 – Odu’a Investment Company, Pioneer Global Resource & Integrated Energy Ltd

Kudo field in OML 89 – Transit Oil E&P

Bime field in OML 49 – Deep Offshore Integrated, Virgin Forest E&P

Kurl field in OML 49 – SHN Energy Ltd (Platform Petroleum, Shepherdhill, Nord Oil)

Ede field of OML 67 – Ede E&P Ltd (Northwest Petroleum, Genesis Technical, Gab & Nutella)

Ekpat field in OML 67 – Duport

Udara field in OML 70 – Oceangate Engineering Oil

Nkuku field of OML 70 – NIPCO E&P, Aries Petroco Resources, Vhelberg E&P, Pathway Universal Investment, Grende Oil, AMG

All these firms are now under intense pressure to prove they’ve done meaningful work on their fields. For some, that means finalising field appraisals. For others, it’s about submitting work plans, or at least showing exploration progress.

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Energy expert, Professor Emeritus Wumi Iledare, warned that the consequences of non-compliance could be brutal.

“The licences will not be renewed if the regulator can’t confirm real exploration or development,” he said. “It’s about showing proof, not promises.”

Adding to the tension, the government is also watching the major oil players.

Shell, Mobil, and other foreign companies have come under fire. The Nigerian government has accused them of diverting oil meant for local use. In response, NUPRC has warned that export permits may be withheld unless these companies prioritise the domestic market.

This crackdown is part of a larger effort to boost national oil production and reduce Nigeria’s dependence on imports. It also aims to ensure that the country earns fair value from its natural resources.

While some observers say the reforms may appear harsh, others argue they are long overdue. The oil industry has been riddled with idle licences, speculations, and underperformance for years.

Now, Nigerian oil firms must either move fast or prepare for loss.

For many small firms, the hope is that the regulator will offer a fair chance. But with the June deadline approaching, hope must turn into action—and quickly.