The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) on Friday, supervised the signing of the conversion of the first Petroleum Prospecting Licence (PPL) to Petroleum Mining Lease (PML) with Ingentia Energies Limited from the 2020 marginal fields bid round.
Also NUPRC has revoked the operating licence of Oritsemeyin Rig and directed it to cease all operations upon the completion of its current well operations.
The holders of PPL 202 are Suntrust Oil Company Nigeria Limited, Petrogas Energy Trade W.A Ltd, Somora GTP Limited, Moore Oil Exploration & Production Nig Ltd, and Genesis Hydrocarbons Limited, while the Special Purpose Vehicle (SPV) created by the firms is Ingentia.
THISDAY recalls that the 2020 marginal field bid round in Nigeria offered 57 oil and gas fields located on land, swamp and shallow offshore terrains, attracting more than 600 firms, with 161 eventually shortlisted for the final stage after going through technical and financial screenings.
Eventually, many of the awarded fields went to multiple companies, necessitating the creation of joint operating vehicles, which although initially slowed progress, were eventually surmounted by the awardees.
Speaking at the landmark event in Abuja, the Commission’s Chief Executive (CCE), Gbenga Komolafe, said it marked a significant step in the implementation of the Petroleum Industry Act (PIA), confirming that the signing of PML 66 represented the first-ever conversion of a PPL to a PML from the bid round.
“This milestone achievement follows the successful commercial discovery of hydrocarbons in the field and the subsequent conversion of the asset in accordance with Section 81(1) of the Petroleum Industry Act. This development clearly demonstrates the value of the bid round and the resilience of our upstream sector.
“The conversion of PPL 202 to PML 66 further reflects the hard work and determination of the licensees, as well as the guidance provided by this commission as a business enabler. More importantly, it sends a strong signal to both domestic and international investors that Nigeria remains a top destination for oil and gas investments, supported by regulatory clarity, commercial viability, and operational excellence,” Komolafe stated.
Besides, Komolafe lauded the diligence, professionalism, and dedication of the Ingentia team in fulfilling their work programmes and obligations under their license, which paved the way for the conversion. He stressed that PML 66 is not merely another lease, but marked the beginning of a new chapter in Nigeria’s oil and gas landscape.
“This underscores the transformative potential of the reforms we have put in place and the shared vision for a more efficient, competitive, and sustainable upstream petroleum industry,”he stated, urging other awardees to emulate the exemplary standards demonstrated by the holders of PML 66.
“I also urge them to maintain this positive momentum and ensure that the benefits of this development extend beyond corporate boardrooms to the Nigerian people, in the form of jobs, capacity building, technology transfer, and enhanced revenues for shared prosperity,”the CCE added.
In her remarks, the Managing Director of Ingentia Energies, Olajumoke Ajayi, described the signing as a new chapter in the company’s growth story and solidifies its position as a rising force in Nigeria’s oil and gas sector. She disclosed that the firm’s aspiration is to have a single digit production cost per barrel.
“As we speak, our rig is on its way. We have two wells to drill back-to-back, and we have about three plans for next year. A well is producing between 2,000 to 2,500 barrels per day. The other wells we are bringing online should contribute another 2,000 to 2,500 barrels, and by the end of the first quarter next year, we expect to increase our production by 7,500 barrels,” she stated.
A THISDAY’s computation showed that at 7,500 barrels per day, the company will be producing roughly 232,500 barrels every month by the end of Q1, 2025.
While expressing appreciation to President Bola Tinubu’s leadership in opening the country’s oil and gas sector to further opportunities, Ingentia pledged to support the commission’s efforts to raise oil production.
According to the firm, the conversion to PML reflects its commitment to unlocking the full potential of its assets and underscores its position as a key player in the energy sector. As a pioneer in the industry, Ingentia said it continues to push boundaries and achieve excellence in its operations.
In the last one year, the company stated that its oil production has added about 900,000 barrels to the additional 1 Million Barrels Initiative’ of the NUPRC launched in October 2024, aimed at boosting the nation’s crude oil production.
The Chief Executive of Ingentia, Ajayi, expressed heartfelt gratitude to the company’s shareholders for their support and to the entire Ingentia team for their relentless efforts in achieving the major milestone of the conversion.
SunTrust was represented by Ekeno Ndebbioa and Yewande Ajilore; PetroGas was represented by Salim Buhari, Abdulrahman Garba, Gabriel Ogbechie, while Dayo Amzat and Farouk Aliyu stood in for Somora.
Also, Moore Oil had Valentine Ugbeide and Rita Ifidon, while Genesis Hydrocarbons was represented by Tunde Banjo and Oseni Elamah.
Meanwhile, the notice for revoked operating licence of Oritsemeyin Rig was contained in a letter dated September 11, 2025, addressed to Selective Marine Services Limited (SMSL) and signed by the Commission Chief Executive, Komolafe.
The NUPRC, in a statement in Abuja on Friday, by its spokesman, Eniola Akinkuotu, said that the decision followed a thorough review of the circumstances surrounding the drilling of UDIBE-2 wellbore.
During the operation, it stressed that a ‘kick’ was recorded, resulting in several Non-Productive Time (NPT) with consequential cost and a forced well sidetrack.
A kick on an oil rig is the unwanted flow of formation fluids (oil, gas, or water) into the wellbore due to a temporary pressure imbalance, where the pressure inside the wellbore becomes lower than the formation pressure.
According to the NUPRC, this phenomenon, if left unmanaged, can lead to a potentially catastrophic uncontrolled release of fluids called a blowout.
Subsequently, the NUPRC said in accordance with Section 97 of the Petroleum Industry Act 2021, it issued a formal notice of culpability via a letter dated June 5, 2025 with a timeline of 21 days followed by a reminder dated July 9, 2025 to ensure an amicable resolution which was not achieved even beyond the stipulated time.
Emmanuel Addeh, Peter Uzoho
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