Nigeria yesterday marked a milestone as the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) converted its first Petroleum Prospecting Licence (PPL) into a Petroleum Mining Lease (PML) under the Petroleum Industry Act (PIA).
NUPRC Chief Executive Gbenga Komolafe described the development as “historic,” stressing that it validates the 2020 Marginal Field Bid Round and signals progress in implementing the PIA.
“PML 66 is the first lease to move from prospecting to mining under the PIA,” Komolafe said. “It demonstrates the resilience of Nigeria’s upstream sector and reaffirms our commitment to transparency, consistency, and efficiency.”
Transition from Prospecting to Production
The conversion covers PPL 202, awarded to Suntrust Oil Company Nigeria Limited, Petrogas Energy Trade West Africa Limited, Somora GTB Limited, MoR Oil Exploration and Production Nigeria Limited, and Genesis Hydrocarbons Limited. These firms formed Ingentia Energies Limited in 2022, which now operates the Egbolom Field in the Central Niger Delta Basin.
The Egbolom Field, discovered in 1982 and previously part of OML 23, is located approximately 12km from the Ogbele terminal and 18km northeast of the Soku Field.
Ingentia’s Expansion Drive
Ingentia Managing Director Olajumoke Ajayi said the PML conversion represents a turning point. Currently, the company produces about 7,000 barrels per day (b/d). However, with two new wells set for back-to-back drilling, output is expected to increase by 2,000–2,500 barrels per day per well. Consequently, total production could climb to 7,500 b/d by the first quarter of 2026.
In addition, Ajayi confirmed the company is building its own crude evacuation facility. Once complete, the project will slash operating costs and push production expenses into single digits per barrel.
Investor Confidence Strengthened
According to Komolafe, the conversion not only highlights commercial viability but also reassures local and foreign investors that Nigeria remains a competitive energy hub. He emphasised that regulatory clarity and operational excellence under the PIA are key to attracting investment.
Meanwhile, Ingentia’s Board Chairman Valentine Ugbeide praised the synergy among the joint venture partners, support from NUPRC, and the dedication of company staff. He said these factors collectively drove Ingentia’s success and positioned the firm for sustainable growth.
