The Federal Government has commenced the review of applications from oil operators seeking extensions for licences that have expired.

The review is aimed at determining whether the operators will be allowed to retain control of the affected oil and gas assets beyond their current tenure.

Checks by Vanguard showed that operators whose licences had expired had submitted applications seeking extensions.

A source at the Nigerian Upstream Petroleum Regulatory Commission confirmed that the applications were being considered.

“The companies have applied for extensions, and the applications are currently being reviewed. It is a normal practice,” the source said.

The development comes amid the Federal Government’s efforts to increase crude oil production and ensure that oil and gas assets are effectively utilised.

The review will determine whether the affected operators meet the requirements for retaining their licences, particularly in line with the government’s emphasis on investment, production and compliance with regulatory obligations.

The NUPRC has previously maintained that operators must demonstrate the technical and financial capacity required to develop their assigned assets.

The review of the expired licences is therefore expected to determine whether the operators will receive extensions or whether the affected assets could be made available for other investors.

The government’s position on dormant or underperforming oil assets has increasingly focused on ensuring that licences are held by operators capable of developing them and contributing to national production.