The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) says that it is set to implement the ‘drill or drop’ policy in the oil and gas sector.
The Chief Executive of the NUPRC, Mr. Gbenga Komolafe, told a delegation from the Independent Petroleum Producers Group at the commission’s headquarters in Abuja that oil and gas producers should either begin production within a specified timeframe or relinquish their licenses.
He stated that the policy aimed to revitalise the oil sector, ensures optimal use of assets and boost government revenue.
According to a statement by the NUPRC, Komolafe discussed the implementation of the ‘drill or drop’ policy, which requires operators to either begin production within a specified timeframe or relinquish their licenses. This policy aims to revitalise the oil sector, ensure optimal use of assets and boost government revenue.”
The NUPRC chief executive warned that the Minister of State for Petroleum Resources (Oil), Sen. Heineken Lokpobiri, had repeatedly vowed to enforce the ‘drill or drop’ policy and that the government would take over all idle oil wells from operators holding on to them.
Komolafe also welcomed the delegation and reiterated the NUPRC’s dedication to creating an enabling business environment as well as outlined several key policies implemented since the enactment of the Petroleum Industry Act, including the automation of regulatory processes such as granting of licenses and permits, which have significantly reduced bureaucratic delays and improved operational efficiency across the sector.
The statement added that the delegation was led by the IPPG Chairman, Mr Abdulrazaq Isa, who also serves as the Chairman of Waltersmith Group, an indigenous oil and gas company.
According to the statement, the visit was a strategic engagement aimed at strengthening collaboration between the commission and indigenous producers. It also served as an opportunity for the IPPG to formally express its appreciation to the NUPRC for the critical role it played in facilitating the recent divestment of assets by international oil companies.
“These divestments, which were closely overseen by the commission, have enabled a significant transfer of upstream oil and gas assets to indigenous operators. This transition marks a pivotal shift in Nigeria’s energy landscape, creating new opportunities for local companies to scale up operations,” it added.
GIK/APA