• Friday, February 23, 2024
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FG mulls revoking idle oil assets licenses

The federal government, through the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) is considering revoking the licenses of oil and gas companies holding vast swathes of undeveloped oil assets. This move could have significant implications for the country’s energy sector.

“Based on the Petroleum Industry Act, the commission is focused on delivering value for the nation so only technically and financially viable firms will keep their leases,” Gbenga Komolafe, Chief Executive Officer of the Commission, told Reuters on Monday.

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Nigeria enacted an oil industry reform law in 2021, which empowered the regulator to review the technical and financial capabilities of companies holding oil exploration leases. Komolafe said the commission will initiate reviews of these leases, and awards of new leases would be “subject to specific terms and conditions.”

More details later…