04 July 2017, Sweetcrude, Abuja – Oil companies seeking to renew their oil licenses or leases would be expected to pay a statutory application fee of $2 million, according to the Department of Petroleum Resources, DPR, in its latest templates for award and renewal of licenses of operators in the petroleum industry.
The 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.
For the renewal of oil licenses, the DPR stated that it applies to exploration and production companies, adding that the process for the renewal would be within 120 working days.
The 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.
The 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.
Furthermore, 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.
The DPR pegged the statutory application fees for marginal oil field 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 flare 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 flare site inspection, adding that the approval would be granted within 15 working days.
The DPR said the roll out of the template was in 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.
