Landmark Conversion Ushers In New Era For Nigerian Upstream Petroleum Sector

In a significant development for Nigeria’s energy sector, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has successfully overseen the conversion of Petroleum Prospecting Licence (PPL) 202 into Petroleum Mining Lease (PML) 66.

This marks the first conversion from the 2020 Marginal Field Bid Round and is a testament to the transformative potential of the Petroleum Industry Act (PIA) 2021.

The official signing ceremony of PML 66 between Ingentia Energies and its shareholders took place in Abuja on Friday, with the Commission Chief Executive (CCE), Engr. Gbenga Komolafe, hailing the event as a critical step in implementing the PIA.

Engr. Komolafe explained that the conversion was made possible following a successful commercial discovery of hydrocarbons in the field, in line with Section 81(1) of the PIA. He described the milestone as a clear demonstration of the value of the 2020 bid round and the resilience of Nigeria’s upstream sector.

“The conversion of PPL 202 to PML 66 clearly demonstrates the value of the 2020 bid round and the resilience of Nigeria’s upstream sector,” Engr. Komolafe added, “It also reflects the hard work and determination of the licensees, as well as the enabling guidance provided by the Commission.

“More importantly, it sends a strong signal to investors that Nigeria remains open for business, supported by regulatory clarity, commercial viability, and operational excellence.”

PPL 202 is held by a consortium of five companies: Suntrust Oil Company Nigeria Limited, Petrogas Energy Trade W.A. Ltd, Somora GTP Limited, Moore and Oil Exploration & Production Nig. Ltd, and Genesis Hydrocarbons Limited.

Engr. Komolafe commended the consortium for their diligence and commitment to fulfilling their work programmes and license obligations.

He urged other awardees from the 2020 Bid Round to emulate the standards demonstrated by the PML 66 holders and to ensure that the benefits of such developments translate into tangible socio-economic impact for Nigerians, including job creation, capacity development, technology transfer, and increased government revenue.

Mrs. Olajumoke Ajayi, the Managing Director of Ingentia Energies, expressed gratitude to the Commission for its steadfast support and leadership throughout the conversion process.

She described the signing of PML 66 as a major milestone for Ingentia and for Nigeria’s indigenous energy firms.

“This significant achievement marks a new chapter in our growth journey and solidifies Ingentia Energies’ position as a rising force in Nigeria’s oil and gas sector,” Mrs. Ajayi stated.

With the conversion completed, Ingentia Energies is set to escalate its operations. Mrs. Ajayi revealed that the company plans to drill over five wells, with two already underway and three more scheduled for next year.

“One of our producing wells is yielding between 2,000 to 2,500 barrels per day. The additional wells we are bringing online are expected to contribute another 2,000 to 2,500 barrels. By the end of Q1 next year, we project an overall production increase of up to 7,500 barrels per day,” she added.

Ingentia Energies also reaffirmed its commitment to supporting the federal government’s ambition to grow national oil production by an additional one million barrels per day, launched under President Bola Tinubu.

The NUPRC emphasises that this landmark achievement reinforces Nigeria’s attractiveness as a destination for both local and international oil and gas investments and underscores the PIA’s transformative potential in reshaping the nation’s upstream petroleum sector.

The agency hopes that the success of PML 66 will pave the way for further growth and development in the industry.