The Nigerian oil and gas sector has reached a significant milestone with the conversion of Petroleum Prospecting Licence (PPL) 202 to Petroleum Mining Lease (PML) 66. This conversion, the first of its kind under the Petroleum Industry Act (PIA) 2021, marks a new era for the industry, signaling regulatory clarity and affirming Nigeria’s attractiveness for oil and gas investments. The successful upgrade, following the 2020 Marginal Field Bid Round, comes after the commercial discovery of hydrocarbons in the field. It highlights the PIA’s effectiveness in facilitating seamless transitions from exploration to production, thus fostering growth and development within the sector. The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has lauded this achievement as a demonstration of the industry’s resilience and the government’s commitment to creating a conducive environment for investment.
The conversion of PPL 202 to PML 66 is a testament to the collaborative efforts of the joint venture partners, Suntrust Oil Company Nigeria Limited, Petrogas Energy Trade W.A Ltd, Somora GTP Limited, Moore Oil Exploration & Production Nig Ltd, and Genesis Hydrocarbons Limited. The NUPRC commended these companies for their diligence, professionalism, and adherence to industry best practices, which ultimately led to the successful conversion. The Commission emphasized that PML 66 signifies a shift in Nigeria’s oil and gas landscape, encouraging other licence holders to follow suit and contribute to the nation’s energy goals. This accomplishment serves as a model for future projects and underscores the potential for further development within the marginal field space.
Ingentia Energies, the operator of the newly designated PML 66, expressed immense pride in this achievement, recognizing it as a crucial step in the company’s growth trajectory and a positive development for Nigeria’s oil and gas sector. The company’s Managing Director, Mrs. Olajumoke Ajayi, emphasized that this milestone solidifies Ingentia Energies’ position as a key player in the industry. She further highlighted the company’s commitment to boosting national production, aligning with President Bola Tinubu’s administration’s goal of increasing crude oil output by one million barrels per day. This ambition reflects the company’s dedication not only to its own growth but also to the overall prosperity of the Nigerian oil and gas sector.
Ingentia Energies has ambitious plans for PML 66, with preparations underway to drill at least five wells in the coming year. The company anticipates a significant increase in production, projecting an additional 7,500 barrels of oil per day by the end of the first quarter of 2026. With a rig already en route and two wells scheduled for immediate drilling, followed by three more next year, Ingentia Energies is poised to make a substantial contribution to Nigeria’s oil production. Each well is expected to yield between 2,000 to 2,500 barrels per day, significantly boosting the company’s output and contributing to the national target. This aggressive drilling campaign showcases the company’s commitment to maximizing the potential of PML 66 and contributing meaningfully to national production targets.
The successful conversion of PPL 202 to PML 66 underscores the transformative power of the PIA. The Act provides a robust legal and regulatory framework that promotes transparency, efficiency, and investment in the oil and gas sector. By streamlining processes and providing clear guidelines for license conversions, the PIA enables companies to progress from exploration to production more efficiently, stimulating growth and attracting both domestic and international investment. This case serves as a practical example of the PIA’s effectiveness in achieving its objectives and fostering a stable and attractive investment climate.
This landmark achievement holds significant implications for the Nigerian economy. Increased oil production translates to higher revenue generation for the government, contributing to economic growth and development. Furthermore, the successful conversion and subsequent development of PML 66 will create job opportunities, stimulate local economies, and foster technological advancements within the oil and gas sector. The ripple effect of this development will extend beyond the energy sector, positively impacting various other sectors of the Nigerian economy. This successful conversion also strengthens investor confidence in the Nigerian oil and gas industry, signaling a stable regulatory environment and the potential for profitable ventures, further encouraging both local and foreign investments.
