The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has announced plans to fully implement its long-anticipated ‘drill or drop’ policy, a move aimed at breathing new life into the country’s underperforming oil sector.
NUPRC Chief Executive, Gbenga Komolafe, made this known while receiving a delegation from the Independent Petroleum Producers Group (IPPG) at the Commission’s headquarters in Abuja. Komolafe stated that under the new policy framework, oil and gas operators will be required to commence production within a stipulated timeframe or forfeit their licenses.
He explained that the directive is part of broader efforts to optimise the use of petroleum assets, attract fresh investments, and boost government revenue from the upstream segment.
“The ‘drill or drop’ initiative is designed to ensure that petroleum resources are actively developed rather than being held in speculation. Operators who fail to make timely progress on their assets will be expected to relinquish them in the interest of national economic growth,” Komolafe said, according to a statement issued by the Commission.
The move reinforces earlier commitments made by the Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, who has consistently maintained that the Federal Government would no longer tolerate inactive oil leases. He warned that any operator failing to develop allocated oil fields would lose them to more capable investors.
During the meeting, Komolafe welcomed the IPPG delegation and reiterated the Commission’s commitment to fostering a supportive regulatory environment. He also highlighted several policy milestones achieved since the enactment of the Petroleum Industry Act (PIA), including the automation of licensing and permitting procedures to reduce red tape and enhance operational efficiency.
Leading the IPPG team was its Chairman, Abdulrazaq Isa, who also heads Waltersmith Group, a prominent indigenous oil and gas company. The visit, according to the Commission’s statement, was aimed at deepening collaboration between NUPRC and local producers. It also provided an opportunity for the group to commend the Commission’s role in facilitating recent asset divestments by international oil companies (IOCs).
“These divestments, which were diligently supervised by the NUPRC, have resulted in the transfer of significant upstream assets to indigenous firms,” the statement noted. “This marks a transformative phase in Nigeria’s energy sector and opens the door for local operators to expand their footprint and production capacity.”
IPPG reaffirmed its support for NUPRC’s ‘Project One Million Barrels Incremental’ initiative an ambitious national programme targeting a substantial boost in daily crude oil output. The group reiterated its readiness to align with the government’s production targets while maintaining a balanced focus on both oil and gas development.
The meeting closed with mutual commitments to continue strengthening collaboration in order to drive sustainable growth in the upstream sector and maximize Nigeria’s hydrocarbon potential.
