The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) is set to implement a ‘drill or drop’ policy, requiring oil and gas producers to either begin production within a specified timeframe or relinquish their licenses. NUPRC Chief Executive, Gbenga Komolafe, recently announced this during a meeting in Abuja with a delegation from the Independent Petroleum Producers Group.
According to a NUPRC statement, Komolafe emphasized that this policy aims to revitalize the oil sector, ensure optimal asset utilization, and boost government revenue. This move aligns with repeated pledges by the Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, who has consistently vowed to enforce the ‘drill or drop’ policy, stating that the government would reclaim all idle oil wells from operators holding onto them.
“Komolafe also 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 was quoted.
During the meeting, Komolafe also reaffirmed the NUPRC’s commitment to fostering a favorable business environment. He highlighted several key policies implemented since the Petroleum Industry Act, including the automation of regulatory processes for licenses and permits. These measures, he noted, have significantly reduced bureaucratic delays and improved operational efficiency across the sector.
