International oil companies (IOCs) that may wish to renew their oil licenses or leases would be required to pay a statutory application fee of $2 million. Indication to that effect was contained in the latest templates for award and renewal of licenses of operators in the petroleum industry issued by the Department of Petroleum Resources (DPR). Th e DPR in its 2017 Service Requirements released recently, also pegged the amount for the conversion from an oil mining license to lease at $1 million.
Th e DPR said the roll out of the template was in compliance with the directives of the Acting President of the Federal Republic of Nigeria, Professor Yemi Osinbajo, contained in the executive order 001 issued on May 18, 2017 in particular, regarding “the promotion of transparency and efficiency in the business environment designed to facilitate the ease of doing business in the country. Accordingly, it said for the renewal of oil licenses, it applies to exploration and production companies, adding that the process for the renewal would be within 120 working days.
Th e DPR listed the criteria for the renewal to include submission of application by the company, in line with guidelines for obtaining Ministerial approval on renewal of license to lease and the payment of statutory application fee. It added that the division or branch that is coordinating service delivery in the DPR with respect to license renewal is the Basinal Assessment & Lease Administration. In the aspect of conversion of license to lease, the DPR said exploration and production companies seeking this service are expected to submit application in line with guidelines for obtaining Ministerial approval on conversion of license to lease. Th e company, according to the DPR, would also be expected to pay the statutory application fee of $1 million, while the process is expected to be concluded within 22 working days.
Also, the DPR stated that for assignment of interest in oil license/lease and in marginal fields, exploration and production companies are expected to submit an application in line with guidelines for obtaining Ministerial approval on Assignment of Interest and the payment of the application fees. Th e DPR pegged the statutory application fees for marginal oil fi eld at $2,500; Oil Prospecting License, OPL, at $5,000; and Oil Mining Lease, OML, at $10,000. For each of the categories, the DPR stated that the approval period would be within 22 working days, while the Basinal Assessment and Lease Administration is the division or branch that is coordinating the service. However, no fee is payable by exploration and production companies seeking permit to fl are gas in the country, as the DPR stated that the companies are only required to submit an application letter and other supporting documents in this regard and facilitate DPR fl are site inspection, adding that the approval would be granted within 15 working days
