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NUPRC grants first petroleum exploration license under PIA  

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Nigeria crude oil

The Federal Government through the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has granted its first petroleum exploration license under the Petroleum Industry Act (PIA). 

This is according to an October 12 report by Punch. The Federal Government has granted the first Petroleum Exploration License under the Petroleum Industry Act (2021) to TGS-PetroData Offshore Services Limited.  

According to the NUPRC, the license issuance followed the provisions of Section 71 (1) – (10) of the PIA. 

The Chief Executive, of NUPRC, Gbenga Komolafe, said the Petroleum Exploration License was under the license agreement which the commission and TGS-PD executed for a geophysical survey project.

He also noted that the license was for the acquisition of about 56,000 square kilometres of 3D seismic and gravity data, adding that the development would attract investment in the oil and gas sector. 

He said: 

Recall that earlier this month, ThePressNG had reported that the Federal Government through the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) marked a significant milestone by granting its first wholesale gas supply license under the Petroleum Industry Act, authorizing Ohuru Trading Limited, a local firm, to supply 500 million standard cubic feet of gas per day.  

Meanwhile, oil and gas operators in the country have also set about implementing the host communities’ development fund for the benefit of local communities where oil and gas assets are present.   

The Punch report earlier cited also noted that the NUPRC has confirmed the increase of Nigeria’s oil drilling rigs from 10 in 2022, to 31 as of August 2023.

The NUPRC highlighted the fact that the development gave rise to increased crude oil output in September 2023. Recall that ThePressNG reported on Thursday that the country pumped 1.5 million litres of crude oil in September, which is the highest level since the beginning of the year.  

Speaking on the increase in oil rigs, Gbenga Komolafe said that in the years preceding the enactment of the PIA, investments in the Nigerian oil and gas industry declined mostly due to regulatory uncertainty, de-funding of fossil fuel development occasioned by energy transition and the global call for decarbonization. 

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