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The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has informed oil producers of its intention to enforce the 'drill or drop' policy.
NUPRC Chief Executive Gbenga Komolafe made this announcement during a meeting with a delegation from the Independent Petroleum Producers Group at the commission’s headquarters in Abuja.
As stated by the NUPRC, Komolafe stressed that oil and gas producers are required to either commence production within a designated timeframe or forfeit their licenses. The policy is designed to rejuvenate the oil sector, enhance asset utilization, and increase government revenues.
Komolafe reiterated that operators must adhere to this policy, emphasizing its importance for the sector's revitalization.
The Minister of State for Petroleum Resources, Heineken Lokpobiri, has also committed to enforcing this policy, indicating that the government would reclaim all dormant oil wells from operators who retain them.
During the meeting, Komolafe welcomed the delegation and reaffirmed the NUPRC’s commitment to fostering a conducive business environment.
The NUPRC also highlighted key policies launched since the Petroleum Industry Act, such as automating regulatory processes, which have notably reduced bureaucratic delays and enhanced operational efficiency.
The IPPG delegation, led by Chairman Abdulrazaq Isa of Waltersmith Group, expressed gratitude to the NUPRC for its role in facilitating recent asset divestments by international oil companies.
These divestments have allowed for a significant transfer of upstream oil and gas assets to local operators, marking a key change in Nigeria’s energy sector and creating opportunities for domestic companies to expand their operations.
During discussions, the IPPG reiterated its support for the commission’s 'Project One Million Barrels Incremental' initiative, which aims to increase Nigeria’s daily crude oil production, highlighting its commitment to aligning with this national goal while focusing on both oil and gas development.
