NUPRC Converts Ingentia’s Petroleum Prospecting Licence To Petroleum Mining Lease

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has announced the successful conversion of Ingentia Energies’ Petroleum Prospecting Licence (PPL 2022) into a Petroleum Mining Lease (PML 66), marking a major milestone in the nation’s oil and gas sector.

The official signing ceremony took place at the Commission’s headquarters in Jabi, Abuja, with key industry stakeholders and government officials in attendance.

NUPRC Chief Executive, Gbenga Komolafe, described the development as “historic,” noting that it was the first conversion from the 2020 Marginal Field Bid Round to reach the mining lease stage.

He explained that the transition was made possible following the successful commercial discovery of hydrocarbons in the field, in line with Section 81(1) of the Petroleum Industry Act (PIA).

He said, “This is a significant milestone in the implementation of the PIA.

“It demonstrates that our licensing framework is not only transparent and efficient, but also effective in driving investment, boosting production, and ensuring the sustainable development of our petroleum resources.”

He added that the conversion underscored the resilience of Nigeria’s upstream oil and gas industry and reaffirmed the Commission’s commitment to providing regulatory clarity and consistency that could strengthen investor confidence.

Komolafe commended the consortium for their professionalism and dedication in fulfilling the terms of their license, which paved the way for the conversion.

“For us at the Commission, PML 66 is not just another lease. It represents the beginning of a new chapter, one that underscores the transformative potential of the reforms we have put in place and the shared vision of a competitive and sustainable upstream petroleum industry,” he said.

The NUPRC boss also emphasized that the achievement should serve as an example for other awardees from the 2020 marginal field round.

He urged them to maintain momentum and ensure that the benefits of their operations extend beyond corporate boardrooms to ordinary Nigerians in the form of job creation, capacity building, technology transfer, and shared prosperity.

According to him, the success of PML 66 sends a strong signal to both domestic and international investors that Nigeria remains an attractive destination for oil and gas investment, anchored on regulatory stability, commercial viability, and operational excellence.

Komolafe concluded by congratulating Ingentia Energies and its partners, assuring them of the Commission’s continued support in ensuring that the full potential of the lease is realized for the benefit of the Nigerian economy.

The Managing Director and CEO of Ingentia Energies Limited, Olajumoke Ajayi during an interview with journalists after the event disclosed that the company plans to ramp up crude oil production to a minimum of 7,000 barrels per day by the end of the first quarter of 2026, following additional drilling campaigns.

Speaking after the official signing of the company’s Petroleum Mining Lease (PML 66) conversion in Abuja, the Ingentia boss said the firm currently produces around 2,000–2,500 bpd but expects significant growth once new wells come on stream.

“Presently, we are doing between 2,000 to 2,500 barrels per day. By March next year, all things being equal, our production should have gone to 7,000 barrels per day minimum,” he explained.

The MD noted that each of the additional wells being drilled is expected to deliver about 2,000–2,500 bpd, bringing total output closer to 7,500 bpd.

She stressed that the company has already been producing for more than a year and evacuates its crude through an existing operator’s facility to the Bonny Terminal, while also meeting domestic supply obligations.

“We currently evacuate through a nearby operator’s facility to Bonny Terminal, and we also sell to local markets. So all the crude we produce is evacuated—we don’t have any stranded barrels,” he said.

Looking ahead, she said the company is investing in its own evacuation infrastructure to improve efficiency and reduce operating costs.

According to her, once completed, the dedicated facility will cut the company’s production cost per barrel to single digits.

“When our evacuation facility is completed, it will bring our cost per barrel down substantially. The plan is to ensure that our cost of production comes down to single digits. For a first-time operator like us, we are not doing badly at all,” the MD remarked.

Ingentia’s planned production ramp-up is significant, given that the company is the first among the 2020 marginal field awardees to successfully achieve a commercial discovery and secure conversion to a mining lease.

The milestone positions Ingentia to play a bigger role in boosting Nigeria’s overall crude output at a time the government is pushing to raise daily production to meet OPEC targets and support foreign exchange earnings.

With its drilling campaign and infrastructure investments underway, Ingentia’s move into higher output levels could also open up opportunities for job creation, technology transfer, and stronger domestic participation in the upstream sector.

NUPRC Converts Ingentia’s Petroleum Prospecting Licence To Petroleum Mining Lease is first published on The Whistler Newspaper