The Race To The Producing Marginal Fields Conversion Deadline

Introduction

In a previous publication, we discussed the transitional framework of existing marginal fields ("MF") introduced by the Petroleum Industry Act ("PIA") and specifically, the categorization of existing MFs as producing MFs and non-producing MFs¹.

While the PIA mandated non-producing MFs to be automatically converted to petroleum prospecting licences ("PPL") from the effective date of the Act² ("Effective Date"), producing MFs were permitted to continue operating under the original royalty rates and existing farm-out agreement entered into with the farmor of the MF ("FOA"), subject to a requirement to convert the producing MF to a petroleum mining lease ("PML") within eighteen (18) months³ from the Effective Date⁴, being 15 February 2023 ("Conversion Deadline").