As Nigeria’s upstream petroleum sector yesterday in Abuja marked conversion of Petroleum Prospecting Licence (PPL) to Petroleum Mining Lease (PML), the first of such 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.
 
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 PIA. 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 and 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.
 
Its 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 currently produces about 7,000 barrels of oil per day and has plans to boost production significantly by the end of October. 
 
“Our rig is already on its way to the location. We have two wells to drill back-to-back, each expected to deliver between 2,000 and 2,500 barrels per day. By the first quarter of next year, we expect to increase our production to about 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. 

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).