- NUPRC is set to enforce the ‘drill or drop’ policy, requiring oil producers to begin production within a set timeframe or forfeit their licenses.
- The policy aims to boost output and revenue, as well as support indigenous operators through recent asset divestments.
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has announced its readiness to enforce the ‘drill or drop’ policy, which directs oil producers to commence production within a set timeframe or forfeit their licences.
The Commission’s Chief Executive, Gbenga Komolafe, revealed this during a recent meeting with a delegation from the Independent Petroleum Producers Group (IPPG) at the NUPRC headquarters in Abuja.
In a statement, the Commission confirmed that Komolafe stressed the importance of the policy, which seeks to revitalise Nigeria’s oil sector, maximise asset utilisation, and increase government revenue. He explained that producers holding idle assets must either drill or release them for reallocation.
Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, has repeatedly reaffirmed the government’s commitment to implementing this policy. He warned that the government would reclaim all dormant oil wells from operators who fail to meet production targets.
Welcoming the IPPG delegation, Komolafe reiterated the Commission’s commitment to fostering a supportive business environment. He highlighted several key reforms introduced since the enactment of the Petroleum Industry Act, including the automation of regulatory procedures for licensing and permits. These changes, he said, have helped reduce bureaucratic delays and improve efficiency across the sector.
The IPPG delegation was led by its Chairman, Abdulrazaq Isa, who also chairs Waltersmith Group, an Indigenous oil and gas company. The NUPRC described the visit as a strategic effort to strengthen collaboration with local producers.
The IPPG used the occasion to thank the Commission for facilitating recent asset divestments by international oil companies. These transactions, closely supervised by the NUPRC, have allowed for a significant transfer of upstream assets to Indigenous operators, opening up new growth opportunities for local firms.
During the meeting, the IPPG also pledged its full support for the Commission’s ‘Project One Million Barrels Incremental’ initiative, which aims to increase Nigeria’s daily crude oil production.