HomeBusiness and EconomyOil and GasFG grants first oil exploration licence under Petroleum Industry Act

FG grants first oil exploration licence under Petroleum Industry Act

Date:

Share post:

- Advertisement -

The Federal Government has granted a Petroleum Exploration Licence to TGS-PetroData Offshore Services Limited, which is the first of such licence to be issued under the Petroleum Industry Act 2021.

It said the licence, which was granted by the Nigerian Upstream Petroleum Commission, was in compliance with the provisions of Section 71 (1) – (10) of the PIA.

It also announced, on Thursday, that Nigeria’s oil drilling rigs had increased from 10 in 2022, to 31 in August this year, a development that gave rise to increased crude oil output in September, as exclusively reported by The PUNCH on Thursday.

- Advertisement -

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

He said in a statement he personally signed that the licence 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.

“Without data, reserves cannot be auctioned for development and revenue attraction. Data acquired under the PEL is not proprietary but speculative/multi-client survey data acquired in partnership with the NUPRC.

“The licence therefore authorises TGS-PetroData Offshore to carry out non-exclusive petroleum exploration operations on a multi-client basis within the licensed area and permits the use of the acquired 3D seismic and gravity data by exploration companies,” Komolafe stated.

On the rise in Nigeria’s rigs count, the NUPRC boss noted 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 decarbonisation.

- Advertisement -

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Related articles

Nigeria Senior Oil Official Wants Working Groups with Companies

by Jov Onsat A senior official at the Nigerian Content Development and Monitoring Board (NCDMB) is pushing for the...

TotalEnergies looks to exit Nigerian onshore oil, following Shell

By America Hernandez French energy giant TotalEnergies (TTEF.PA), opens new tab is seeking to sell its minority share in...

PENGASSAN rejects planned sale of Shell onshore assets

..Says group intending to buy unknown, no records of managing such assets By Victor Ahiuma-Young The Petroleum and Natural Gas...

2013-2024: Timeline of Dangote Refinery’s race to end fuel imports in Nigeria

By Dipo Oladehinde & Abubakar Ibrahim Dangote’s new plant to compete in $580bn global petrochemicals market Share For decades, Nigeria, Africa’s...