The Federal Government has announced plans to enforce the “drill or drop” policy, which will require oil producers to either begin production within a set period or forfeit their operating licenses.
Chief Executive Officer of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Gbenga Komolafe, revealed this during a recent meeting with the Independent Petroleum Producers Group (IPPG) at the commission’s headquarters in Abuja.
In a statement released by the NUPRC, Komolafe said the policy is aimed at reviving the oil sector, ensuring better use of oil blocks, and increasing government revenue.
He explained that operators who fail to meet development timelines would be made to surrender their unused assets, in line with the new directive.
The move is in line with earlier declarations by the Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, who had consistently warned that the government would reclaim idle oil wells from companies that fail to develop them.
During the meeting, Komolafe restated the commission’s commitment to creating a friendly business environment for operators.
He also spoke about reforms that followed the enactment of the Petroleum Industry Act, including the automation of licensing and permitting processes, which he said had helped reduce delays and improved the overall efficiency of the sector.
The IPPG delegation was led by its Chairman, Mr. Abdulrazaq Isa, who is also the head of Waltersmith Group, a Nigerian oil and gas firm.
The visit, according to the NUPRC, was a strategic move to deepen cooperation between the commission and local producers.
Isa expressed appreciation to the commission for its role in the recent asset divestments by international oil companies, which enabled a transfer of significant upstream operations to indigenous firms.
He said this development represents a major step forward for local participation in Nigeria’s energy sector.
The group also pledged its support for NUPRC’s ‘Project One Million Barrels Incremental’ programme, an initiative aimed at raising Nigeria’s daily crude oil output.
The IPPG stated that its members remain committed to advancing both oil and gas development as part of broader national goals.