The Nigerian Upstream Petroleum and Regulatory Commission has disclosed the President Bola Tinubu administration’s plan to revoke unused oil exploration leases.
The Federal Government would take back leases to companies who have not been able to carry out any exploration activities on them since they were granted the leases.
This was made known by the Chief Executive Officer, Nigerian Upstream Petroleum Regulatory Commission, Gbenga Komolafe, on Monday.
Komolafe told Reuters that only companies with viable technical and financial backup 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,” he said.
Komolafe said the commission would initiate reviews of these leases, and awards of new leases would be “subject to specific terms and conditions.”
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.
