The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has announced its commitment to enforce the “drill or drop” policy, signaling a bold move to reclaim undeveloped oil and gas assets from operators failing to utilize them.
The commission’s chief executive, Gbenga Komolafe, disclosed this during a recent meeting with members of the Independent Petroleum Producers Group (IPPG) at the NUPRC headquarters in Abuja.
According to a statement issued by the commission, Komolafe emphasized that oil and gas operators must either begin production within a stipulated timeframe or relinquish their licenses to the government.
“This is in line with Nigeria’s drill-or-drop policy sanctioned by the upstream regulator,” the statement noted.
Komolafe highlighted that the policy is part of ongoing efforts to revitalize Nigeria’s oil sector, maximize asset utilization, and boost government revenue.
Prior to this, the Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, had consistently reiterated that the federal government would implement the drill-or-drop policy.
Lokpobiri maintained that the government would reclaim idle oil wells from operators who have failed to develop them.
New initiatives to improve sector efficiency
During the session, Komolafe also outlined a series of regulatory reforms aimed at fostering a more enabling environment for business operations in the upstream sector.
Chief among these initiatives, he said, is the Petroleum Industry Act (PIA), as well as the effort taken by the agency to automate the license granting process.
According to Komolafe, this has significantly reduced bureaucratic delays and enhanced operational efficiency across the industry.
The IPPG delegation was led by Mr. Abdulrazaq Isa, Chairman of Waltersmith Group, who also chairs the IPPG.
The group leveraged the meeting to express gratitude to the commission for facilitating the recent divestments by international oil companies (IOCs).
They said the transition marks a pivotal shift in Nigeria’s energy landscape, creating new opportunities for local companies to scale up operations.
The IPPG also reaffirmed its commitment to the NUPRC’s ‘Project One Million Barrels Incremental’ initiative.
The program aims to increase Nigeria’s daily crude oil output, providing a much-needed boost to the nation’s energy supply and export capacity.
It is also noteworthy that in May 2025, President Bola Tinubu signed the Upstream Petroleum Operations (Cost Efficiency Incentive) Order
The policy is intended to cut high operational costs and increase revenue generation in the upstream sector.
The implementation of this executive order is expected to commence in the second half of the year.