The Nigerian Upstream Petroleum Regulatory Commission has informed oil producers across the country about its plans to implement the “drill or drop” policy.
The Chief Executive of the NUPRC, Gbenga Komolafe, recently made the announcement while receiving a delegation from the Independent Petroleum Producers Group at the commission’s headquarters in Abuja.
Speaking via a press statement, Komalafe said that henceforth, oil and gas producers must start production within a specified timeframe or risk relinquishing their licenses.
According to him, the “drill or drop” policy will help to develop the oil sector, guarantee optimal use of assets, and increase government revenue.
“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,” he said.
The Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, also said that the enforcement of the “drill or drop” policy will be taken seriously. He vowed that the government would immediately take over all idle oil wells from operators holding on to them.
Meanwhile, at the meeting with IPPG, Komolafe reiterated the NUPRC’s dedication to creating an enabling business environment.
He mentioned vital policies implemented since the enactment of the Petroleum Industry Act, including the automation of regulatory processes like granting of licenses and permits, which he believes have significantly decreased bureaucratic delays and enhanced operational efficiency across the sector.
The IPPG Chairman, Mr Abdulrazaq Isa, revealed that the meeting was a strategic engagement aimed at strengthening the partnership between the commission and indigenous producers.
He concluded by saying that the recent assets by international oil companies have gone a long way towards enabling a major transfer of upstream oil and gas assets to indigenous operators.
“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,” he added.
Folami David is a dynamic journalist who views the world through an analytical lens, translating complex narratives across multiple industries into compelling stories. With an insatiable appetite for information and a keen eye for emerging trends, Folami specializes in uncovering the interconnections between technology, business, culture, and society.
