The Nigerian Upstream Petroleum Regulatory Commission has told oil producers that it is set to implement the ‘drill or drop’ policy.
The Chief Executive of the NUPRC, Engr. Gbenga Komolafe, disclosed this when he received a delegation from the Independent Petroleum Producers Group (IPPG) led by its Chairman, Mr Abdulrazaq Isa, who is also the Chairman of Waltersmith Group, an indigenous oil and gas company, at the commission’s headquarters in Abuja.
According to a statement from the commission on the discussions with oil producers group, Komolafe stressed that oil and gas producers must either begin production within a specified timeframe or relinquish their licenses.
The upstream subsector industry regulator, who welcomed the delegation and reiterated the NUPRC’s dedication to creating an enabling business environment, explained that the policy was introduced to revitalise the hydrocarbon resources industry, ensure optimal use of assets, and boost government revenue.
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The statement partly reads: “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 commission’s boss spoke on key policies that had been implemented by the NUPRC since the enactment of the Petroleum Industry Act, including the automation of regulatory processes such as granting of licences and permits to reduce bureaucratic delays, and improved operational efficiency across the sector.
On the purpose of the visit the NUPRC further clarified: “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.
The IPPG team was quoted as reaffirming the group’s commitment to supporting the commission’s ’Project One Million Barrels Incremental’ initiative—a programme initiated to boost the country’s daily crude oil production.
It would be recalled that over the past year, the Minister of State for Petroleum Resources (Oil), Sen. Heineken Lokpobiri, had consistently promised to enforce the ‘drill or drop’ policy to enable the government take over abandoned oil wells by licensees.
