Nigeria's upstream oil sector faces expiry of 19 licenses this year

Nigeria's upstream oil and gas sector faces a significant challenge as no fewer than 19 oil licenses are scheduled to expire within 2026. According to the Nigerian Upstream Petroleum Regulatory Commission's (NUPRC) "Nigerian Upstream Concession Situation Report," released in August 2026, these expiring licenses include 12 Petroleum Prospecting Licenses (PPLs) and seven Oil Prospecting Licenses (OPLs).

Adding to the urgency, three oil licenses have expiry dates in 2025, and several others are slated for expiration in 2027. This looming expiration of concessions comes at a critical time when the Federal Government is actively seeking to attract fresh investment into the upstream sector. The government's objectives include raising crude oil production, deepening exploration activities, and revitalizing idle assets.

The report details specific PPLs with 2026 expiry dates, such as PPL 220 held by Navante Exploration and Production Limited (October 16, 2026), PPL 232 by Kizi Oil and Gas Services Limited (November 16, 2026), and PPL 235 by Oceangate Engineering Oil & Gas Limited (November 1, 2026). Other PPLs listed include PPL 223 (November 30, 2026) and PPL 251 (November 16, 2026). The report also notes that PPL 277, PPL 275, and PPL 254 had expiry dates of February 14, 2026, indicating their tenures had already elapsed by the time the report was published, though it does not confirm revocation.

Similarly, several OPLs are set to expire in 2026. These include OPL 228 (Sahara Upstream Production Nigeria Limited, July 9, 2026), OPL 289 (Cleanwaters Consortium, September 9, 2026), OPL 809 and OPL 810 (June 14, 2026), OPL 276 (August 14, 2026), and OPL 2010 (December 23, 2026). OPL 215, held by Noreast Petroleum Nigeria Limited, is listed with a May 3, 2026 expiry date.

The issue of license expiry affects both onshore and offshore acreage across various types of upstream concessions. Many of the affected PPLs are situated in the Niger Delta region, encompassing onshore and continental shelf areas. For example, PPL 220 covers 44.816 square kilometers in the onshore Niger Delta and is linked to the Abigborodo field. The NUPRC report provides a comprehensive overview of these concessions, highlighting the scale of upcoming expirations and the potential impact on Nigeria's oil and gas industry.