FG to revoke unused oil exploration leases

The President Bola Tinubu administration’s plan to cancel unused oil exploration leases was revealed by the Nigerian Upstream Petroleum and Regulatory Commission.

The Federal Government would reclaim leases from companies that have not done any exploration activities on them since they got the leases.

The Chief Executive Officer of the Nigerian Upstream Petroleum Regulatory Commission, Gbenga Komolafe, announced this on Monday.

Komolafe told Reuters that only companies with strong technical and financial support would hold on to their leases.

“Based on the PIA (Petroleum Industry Act), the commission is committed to delivering value for the nation, so only firms that are technically and financially strong will hold on to their leases,” he said.

Komolafe said the commission would start reviewing these leases, and giving out new leases would be “based on specific terms and conditions.”

The latest data from the NUPRC showed that, even though about 53 exploration leases were given out from 2003 till date, more than 60 percent of the exploration licences given to local and foreign oil firms had run out.