WHAT IS A PETROLEUM PROSPECTING LICENCE (PPL)?
This is a licence awarded by the Minister of Petroleum Resources under section 72 of the Petroleum Industry Act, 2021. Subject to the conditions imposed on the Licence by the Minister, it confers the following rights to the holder:
- Exclusive right to drill exploration and appraisal well
- Non-exclusive right to carry out petroleum exploration operations within the area provided for in the licence
- right to carry away and dispose of crude oil or natural gas won or extracted during the drilling of exploration or appraisal wells as a result of production tests, subject to the fulfilment of obligations imposed by the PIA, 2021.