The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has warned newly awarded holders of Petroleum Prospecting Licences (PPLs) to commence development of their assets without delay, or risk losing them, in line with the “drill or drop” provision under the Petroleum Industry Act (PIA).
The commission issued the warning at the signing ceremony of the second batch of winners of the 2022/2023 mini bid round and the 2024 licensing round in Abuja on Friday.
A licensing round is a process by which the government grants oil and gas exploration and production rights to companies through competitive bidding.
Companies that were presented with their licences at the venue include: Biswal Oil and Gas Ltd, Dewayles International Ltd, First E&P development Co.Ltd, Panout Oil and Gas Ltd, R28 Holdings Ltd and Hakilat Oil and Gas Consortium.
The NUPRC had, on 8 July, presented some companies with their awards on the sidelines of the 2026 Nigeria Oil and Gas (NOG) Energy Week. Some companies that received their licences at the time include: Broron Energy Limited, Petroli Energy Marketing and Supply Limited, Sahara Deepwater Resources Limited and Tulcan Energy E&P.
Speaking at the event on Friday, according to a statement by the NUPRC Head, Media and Corporate Communications, Eniola Akinkuotu, the Commission Chief Executive, Oritsemeyiwa Eyesan, said licence holders must prioritise host community obligations in order to succeed.
“As licensees, you are expected to execute your approved work programmes diligently, honour your financial commitments, comply fully with the provisions of the PIA, the applicable regulations and these contractual documents.
“The commission equally expects the highest standards of health, safety, environmental protection and responsible engagement with host communities,” Ms Eyesan said.
She said the licensees awarded under the 2022/23 mini bid round and the Nigeria 2024 licensing round are expected to stimulate exploration activities, attract additional investment, accelerate the development of Nigeria’s hydrocarbon resources and contribute meaningfully to the nation’s energy security and economic development.
According to her, these objectives are closely aligned with the federal government’s strategic aspiration to increase Nigeria’s crude oil production to 2 million barrels per day by 2027, while positioning the country to achieve a long-term production target of 3 million barrels per day by 2030.
Also speaking, the Commission Secretary and Legal Adviser, Olayemi Adeboyejo, advised the new awardees to develop their assets or risk losing them in line with the “drill or drop” provision backed by the Petroleum Industry Act.
Ms Adeboyejo urged the awardees to set up their respective Host Community Development Trust (HCDT) as quickly as possible and to embrace alternative dispute resolution and less litigation in order to ensure a harmonious relationship with both operators and regulators.
In his presentation, the Executive Commissioner, Development and Production, Enorense Amadasu, urged the awardees to adhere to their work programmes and commitments.
He said the commission had begun to speed up approvals for permits in order to improve the ease of doing business. He added that the commission was ready to give them full support and enable them to succeed.
