Section 92: Voluntary Conversion of an Oil Prospecting Licence to a Petroleum Prospecting Licence or Oil Mining Lease to Petroleum Mining Lease.

1 A holder of an existing oil prospecting licence or oil mining lease may enter into a voluntary conversion contract under this Act.

2 A licensee or lessee under a conversion contract shall benefit from the fiscal provisions under Chapter 4 of this Act, where the licensee or lessee complies with the provisions of this Act.

3 The conversion contract shall contain a termination clause of all outstanding arbitration and court cases related to the respective oil prospecting licence or oil mining lease and—
a any stability provisions or guarantees provided by NNPC in respect of oil prospecting licences or oil mining leases to be converted shall be null and void; and
b the incentive provisions contained in sections 11 and 12 of the Petroleum Profit Tax Act shall not apply.
Cap. P13 LFN. 2004.

4 A conversion contract shall be concluded at a date ("conversion date”) which is the earlier of—
a 18 months from the effective date; and
b the expiration date of the oil mining lease or date of conversion of the oil prospecting licence to an oil mining lease.

5 Prior to the conversion date, the terms applicable to the oil prospecting licence or oil mining lease prior to the effective date shall continue to apply.

6 Where a holder of an existing oil prospecting licence or oil mining lease does not enter into a conversion contract prior to the conversion date, the terms and conditions applicable to the oil prospecting licence or oil mining lease prior to the effective date of this Act shall continue to apply to the oil prospecting licence or oil mining lease, subject to sections 124 (2), 125 (6), 174 (6), 303 (1) and 311 (2) (b) of this Act.

7 Where an oil prospecting licence is converted, the term of years included in such licence shall apply to the converted petroleum prospecting licence.