PML 66 conversion signals investors’ confidence in Nigeria’s upstream sector

Mkpoikana Udoma

Port Harcourt — The recent conversion of Petroleum Prospecting Licence, PPL 202, to Petroleum Mining Lease, PML 66, has been hailed by the Nigerian Upstream Petroleum Regulatory Commission, NUPRC, as a strong vote of confidence in Nigeria’s upstream oil and gas industry.

The landmark transition, the first of its kind from the 2020 Marginal Field Bid Round, is expected to trigger new capital inflows and reassure both local and international investors of the commercial viability of Nigerian assets under the Petroleum Industry Act, PIA 2021.

NUPRC’s Chief Executive, Engr. Gbenga Komolafe, described the development as a demonstration of regulatory clarity and the resilience of Nigeria’s investment climate.

“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,” Komolafe said.

The licensees—Suntrust Oil Company Nigeria Limited, Petrogas Energy Trade W.A Ltd, Somora GTP Limited, Moore Oil Exploration & Production Nig Ltd, and Genesis Hydrocarbons Limited—have formed Ingentia Energies, which has pledged to drill over five wells on the asset.

According to NUPRC, the conversion follows a successful commercial discovery of hydrocarbons and the licensees’ fulfilment of obligations under their work programme.

Komolafe noted that the transition provides not just a pathway for production, but also a template for regulatory certainty and transparency that can attract further foreign direct investment.

“This milestone achievement clearly demonstrates the value of the bid round and the resilience of our upstream sector,” the CCE added.

The PML 66 success could spur renewed confidence among other awardees from the 2020 bid round, many of whom have faced delays in moving to production.

For Ingentia Energies and its shareholders, the focus is now on translating regulatory approval into tangible output, with expectations of stable production and wider economic benefits for Nigeria.