As Nigeria’s upstream petroleum sector yesterday in Abuja marked the conversion of Petroleum Prospecting Licence (PPL) to Petroleum Mining Lease (PML), the first such conversion under the Petroleum Industry Act (PIA), indigenous producers, Ingentia Energies Limited, said the cost of oil production per barrel could come down to a single digit.

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC), at the signing ceremony, said investor confidence is returning to the industry as more wells are being drilled.

Speaking at the event, NUPRC Chief Executive, Gbenga Komolafe, described the conversion as “historic” and a significant step in the implementation of the PIA.

“PML 66 is the very first petroleum mining lease to be converted from a petroleum prospecting licence awarded under the 2020 Marginal Field Bid Round.

“This milestone follows the successful commercial discovery of hydrocarbons in the field and its subsequent conversion, in line with Section 81(1) of the Petroleum Industry Act. This development clearly demonstrates the value of the bid round and the resilience of Nigeria’s upstream oil and gas industry,” Komolafe said.

Komolafe added that the conversion shows the Commission’s commitment to transparency, consistency, and efficiency in its regulatory mandate.

“More importantly, this milestone sends a strong signal to domestic and international investors that Nigeria remains a destination of choice for oil and gas investments, anchored on regulatory clarity, commercial viability, and operational excellence,” he stated.

The holders of PPL 202 — Suntrust Oil Company Nigeria Limited, Petrogas Energy Trade West Africa Limited, Somora GTB Limited, MoR Oil Exploration & Production Nigeria Limited, and Genesis Hydrocarbons Limited — were commended for their diligence and commitment to fulfilling their work programme, which paved the way for the conversion.

Ingentia Energies Limited, incorporated in 2022 as a joint venture between the five licensees, operates the Egbolom Field, a swamp marginal field located in the Central Niger Delta Basin. The field, discovered in 1982 and formerly part of OML 23, lies about 12 kilometres from the Ogbele terminal and 18 kilometres north-east of the Soku Field.

Ingentia’s Managing Director, Olajumoke Ajayi, hailed the PML conversion as a turning point for the company.

“Being the first among the 2020 marginal field awardees to convert to a PML is a great feat,” she said.

Ajayi disclosed that Ingentia has plans to boost production significantly by next year.

“Drilling rig is moving to location for our drilling campaign. We have two wells to drill back-to-back, each expected to deliver between 2,000 and 2,500 barrels per day. By the end of the first quarter of year 2026, our production will increase to 7,500 barrels per day,” she said.

The company also revealed that it is constructing its own crude evacuation facility, a move expected to slash production costs and improve operational efficiency.

“Once our dedicated evacuation facility is completed, our cost of production per barrel will come down substantially. This is part of our broader plan to remain competitive and sustain production growth,” Ajayi explained.

She credited the Commission for its support, stating that NUPRC’s guidance had been critical to Ingentia’s success.

“At several points, we called upon the Commission, and they stood by us without hesitation, and that is what has made this achievement possible,” she said.

Ajayi also thanked the host community for their cooperation, stressing that Ingentia is committed to ensuring the benefits of the project extend beyond shareholders.

“We are committed to delivering jobs, capacity building, and technology transfer that will benefit our host community and Nigerians at large,” she said.

Speaking at the signing ceremony, Board Chairman Valentine Ugbeide described Ingentia’s journey as one “built on vision, partnership, and perseverance,” crediting the company’s progress to the synergy among its partners, the dedication of its staff, and the guidance of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).

Ugbeide reported that Ingentia is currently averaging 2,300 barrels of oil per day (bopd) and is focused on further development of the asset to boost production and contribute to Nigeria’s hydrocarbon output. He emphasised the importance of continued collaboration with host communities, the Rivers State Government, and regulators, noting that stakeholder engagement will remain a priority.

He also acknowledged the support of the President, the Federal Ministry of Petroleum Resources, and industry regulators, adding that the company is determined to play a meaningful role in advancing the country’s energy future.