FG Plans to Enforce Revocation of Idle Licences

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has announced plans to enforce its “drill or drop” initiative, directing oil exploration firms to either commence drilling activities within a set period or forfeit their licenses.

This development was revealed by the NUPRC’s Chief Executive, Gbenga Komolafe, during a recent courtesy visit by representatives of the Independent Petroleum Producers Group (IPPG) to the commission’s headquarters in Abuja.

As highlighted in the NUPRC’s official statement, Komolafe stressed the urgency for operators to begin meaningful exploration or risk losing access to their allocated oil blocks. He noted the move is intended to invigorate the sector, encourage efficient asset use, and improve revenue generation for the government.

“Komolafe also discussed the implementation of the ‘drill or drop’ policy, which requires operators to either begin production within a specified timeframe or relinquish their licenses. This policy aims to revitalise the oil sector, ensure optimal use of assets, and boost government revenue,” the NUPRC chief executive was quoted.

According to The PUNCH, Heineken Lokpobiri, Nigeria’s Minister of State for Petroleum Resources (Oil), has consistently pledged to enforce this policy, adding that the government will reclaim inactive oil assets from companies that continue to hold them without development.

During the meeting, Komolafe welcomed the IPPG team and reaffirmed the commission’s intention to maintain a conducive business atmosphere for industry players.

He also shed light on several strategic reforms introduced following the passage of the Petroleum Industry Act. These include the digitisation of major regulatory activities such as permit issuance and license approvals, which have helped streamline operations and cut down on procedural bottlenecks.

The commission’s statement noted that the IPPG delegation was headed by its Chairman, Mr. Abdulrazaq Isa, who also chairs Waltersmith Group, a Nigerian-owned energy company.

“The visit was a strategic engagement aimed at strengthening collaboration between the commission and indigenous producers. It also served as an opportunity for the IPPG to formally express its appreciation to the NUPRC for the critical role it played in facilitating the recent divestment of assets by international oil companies.”

These divestments, closely supervised by the commission, led to a notable transfer of upstream oil fields to Nigerian-owned firms. This shift is seen as a landmark development, empowering local operators to expand their footprint in the nation’s energy sector.

Additionally, during the discussions, IPPG reiterated its support for the commission’s effort to ramp up oil output through the ‘Project One Million Barrels Incremental’ initiative. The group confirmed its alignment with this vision and restated its focus on advancing both oil and gas production goals in the country.