The Nigerian National Petroleum Corporation (NNPC) has recommended the splitting of petroleum licences into two components namely Petroleum Exploration Licence (PEL) to prospect for petroleum and Petroleum Lease (PL) to cover the production phase to search for, win, work, carry away and dispose of petroleum under the draft Petroleum Industry Administrative Bill currently before the National Assembly. It proposed five years prospecting licence for onshore and shallow fields and a duration of 10 years for deep offshore and frontier basins and recommended 20 years production lease for onshore and shallow fields as well as deep offshore and frontier basins. The corporation further submitted that only the production lease period should be renewed for a period not exceeding 20 years.
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