NUPRC Notifies 40 Oil Firms of Expiring Licences, Sets $5,000 Fee for Extension

|By Adejumo Adekunle-

-NUPRC Issues Expiry Notice to 40 Oil Licence Holders
–Commission Demands Fresh Fees and Documentation for Extension

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has officially notified holders of approximately 40 Petroleum Prospecting Licences (PPLs) of their upcoming licence expiration, setting strict conditions for possible extension.

In a letter signed by the Commission’s Chief Executive Officer, Gbenga Komolafe, and addressed to affected companies, the agency stated that the PPLs granted during the 2020 Marginal Field Bid Round will expire on Thursday, June 27, 2025, in accordance with the original licence terms approved on June 28, 2022.

“A review of our records indicates that the PPL will expire on 27th June 2025, which is in line with the terms of the award of the licence,” the letter reads.

As part of the conditions for extension, NUPRC demanded an application fee of $5,000 from any company seeking renewal.

The Commission further outlined detailed requirements for the extension request, including:

• Evidence of submission of a work performance guarantee for the initial three-year exploration period, issued by a commercial bank licenced by the Central Bank of Nigeria.

• The issuing bank must have a minimum ‘BBB’ credit rating, backed by at least two rating agencies — one of which must be a Nigerian-registered agency with the Securities and Exchange Commission (SEC).

• A detailed justification for the extension request, including:

  • Proposed exploratory and geological work programmes,

  • Outstanding activities to be reclassified into a new work schedule,

  • Clear implementation timelines.

“The proposed value of the performance security must guarantee the financial commitment during the proposed extension period,” the statement added.

This move signals a push by the Federal Government to enforce compliance and ensure exploration activities within Nigeria’s marginal fields are actively pursued and not left dormant. It also reflects efforts to boost revenue and accountability in the upstream oil sector.