The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has reaffirmed plans to implement the “drill or drop” policy as part of efforts to optimise Nigeria’s oil and gas resources.
NUPRC Chief Executive, Gbenga Komolafe, disclosed the development during a recent meeting with representatives of the Independent Petroleum Producers Group (IPPG) at the commission’s headquarters in Abuja.
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‘Drill or drop’ policy
Under the policy, oil companies holding undeveloped assets will be required to commence drilling within a set timeframe or forfeit their licenses. Komolafe explained that the move is designed to boost government revenue, ensure productive use of national assets, and reinvigorate the country’s oil production efforts. He noted that the commission will take a firm approach in enforcing the policy to address long-standing issues around dormant oil blocks.
This stance aligns with earlier commitments made by the Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, who had repeatedly vowed that the government would reclaim idle oil fields from operators failing to develop them.
During the meeting, Komolafe also highlighted key reforms introduced since the enactment of the Petroleum Industry Act (PIA), including the automation of licensing and regulatory processes. According to him, these changes have significantly reduced bureaucratic delays and improved transparency in the sector.
The IPPG delegation, led by its chairman and Waltersmith Group CEO, Abdulrazaq Isa, commended the commission for its role in facilitating recent asset transfers from international oil companies to local firms. The group described the divestment process as a milestone in increasing indigenous participation in the upstream segment of the industry.
In a show of support for the federal government’s broader production targets, the IPPG pledged its commitment to NUPRC’s “Project One Million Barrels Incremental” initiative. The project aims to raise Nigeria’s daily crude oil production through a collaborative effort between regulators and industry players. The group also stressed its commitment to both oil and gas development as part of a broader national energy strategy.