The Federal Government, through the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), is set to enforce a new “drill or drop” policy that mandates oil and gas operators to either commence production within a defined period or forfeit their licences.
This was revealed by the Chief Executive of the NUPRC, Gbenga Komolafe, during a recent meeting with the Independent Petroleum Producers Group (IPPG) at the commission’s headquarters in Abuja.
Komolafe explained that the policy is aimed at revitalising Nigeria’s oil and gas industry by ensuring that only active and committed operators retain exploration and production licences. He emphasized that this initiative is expected to maximize the value of hydrocarbon assets and increase government revenue.
“The commission will not hesitate to withdraw dormant licences. Operators must drill or drop. It’s time to put idle assets to work for the benefit of the nation,” Komolafe said, reinforcing earlier remarks by the Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, who had pledged to reclaim all inactive oil fields.
He also highlighted several regulatory reforms instituted under the Petroleum Industry Act (PIA), including the digitalisation of licensing processes, which he said has improved efficiency and reduced red tape.
The IPPG delegation, led by its Chairman Abdulrazaq Isa—who also chairs Waltersmith Group—used the visit to commend the commission for facilitating recent divestments of assets by international oil companies. These transfers, they noted, have empowered indigenous operators and opened new avenues for domestic participation in the upstream sector.
The group also expressed strong support for the NUPRC’s “Project One Million Barrels Incremental” initiative, pledging their commitment to increase Nigeria’s daily crude oil production and pursue growth in both oil and gas development.
The new policy is part of broader reforms aimed at reshaping Nigeria’s energy landscape and stimulating greater productivity from local players.
