International Oil Companies (IOCs) seeking to renew their expired licences in various locations in Nigeria may be disappointed with the latest development, as the Group Managing Director (GMD) of the Nigerian National Petroleum Corporation (NNPC), Mele Kyari disclosed that the Corporation would not grant their requests.
“The GMD explained that there was no immediate plan to renew the licences as the Federal Government was interested in having the exploration and production arm of the NNPC,” the Corporation quoted Kyari.
What this means: In view of the latest development, IOCs that operate within the shores of the country with expired licences may be severely penalised because their activities will now be termed illegal.
News continues after this ad
Also, if the NNPC insists on its decision not to grant the renewal, the affected companies will no longer be able to maximise their potentials in hydrocarbon production and assets in the oil and gas industry.
“We projected for the licence renewal probably around $2bn; right now, we are at about $1.2bn, $1.3bn. I don’t have the total number of the people renewing but I’m aware it should be around 20 to 30 renewal.”