The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) is set to fully implement its long-awaited ‘drill or drop’ policy, aiming to revitalize Nigeria’s sluggish oil sector.
NUPRC Chief Executive, Gbenga Komolafe, announced the move during a meeting with the Independent Petroleum Producers Group (IPPG) at the Commission’s Abuja headquarters. He stated that under the policy, oil and gas companies must begin production within a set timeframe or risk losing their licenses.
Komolafe explained that this directive forms part of a broader strategy to maximize petroleum asset utilization, attract new investments, and increase upstream revenue for the government.
He emphasized that the policy intends to discourage speculative hoarding of oil blocks by ensuring active field development. Companies that fail to make timely progress will have to surrender their assets for reassignment to more capable developers.
The initiative aligns with recent warnings from the Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, who has repeatedly stressed the government’s resolve to revoke dormant oil licenses and reallocate them to serious investors.
During the session, Komolafe welcomed the IPPG delegation and reaffirmed NUPRC’s commitment to providing a business-friendly regulatory environment. He also outlined key achievements under the Petroleum Industry Act (PIA), including the digitization of licensing and permitting processes to cut bureaucracy and speed up operations.
Abdulrazaq Isa, Chairman of IPPG and head of Waltersmith Group, led the visiting team. The visit aimed to enhance collaboration between indigenous producers and the Commission, while recognizing NUPRC’s effective handling of recent asset transfers from international oil companies (IOCs).
According to NUPRC, these divestments—closely supervised by the Commission—have enabled Nigerian firms to acquire major upstream assets, opening up new growth opportunities for local players.
The IPPG delegation expressed its continued support for the Commission’s ‘Project One Million Barrels Incremental’ programme, a national drive to significantly raise crude oil output. The group pledged to contribute actively to production goals while maintaining a strong focus on oil and gas development.
The meeting concluded with both parties agreeing to deepen cooperation and drive long-term growth in Nigeria’s upstream oil sector.
source:www.tv360nigeria.com
