The Nigerian Upstream Petroleum and Regulatory Commission has said the Federal Government is planning to revoke unused oil exploration leases that companies were granted but have not been able to carry out any exploration activities on them.
The Chief Executive Officer, Nigerian Upstream Petroleum Regulatory Commission, Gbenga Komolafe told Reuters on Monday 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,” Komolafe 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 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.
