‘Drill Or Drop’: NUPRC Warns Licencees To Develop Assets Or Risk Forfeiture

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has warned newly awarded Petroleum Prospecting Licence (PPL) holders to develop their assets or face forfeiture under the Petroleum Industry Act’s “drill or drop” provision.

The NUPRC chief executive, Oritsemeyiwa Eyesan, speaking during the signing ceremony for winners of the 2022/2023 Mini Bid Round and the 2024 Licensing Round in Abuja on Friday said that licencees must execute approved work programmes diligently and meet their financial and statutory obligations.

She said the Commission expects licence holders to “honour your financial commitments, comply fully with the provisions of the PIA, the applicable regulations and these contractual documents,” adding that they must uphold high standards of health, safety and environmental protection.

Eyesan said licencees should also engage responsibly with host communities and set up Host Community Development Trusts (HCDTs) as required, warning that failure to do so could affect their licences.

She said the new awardees are expected to stimulate exploration activity, attract fresh investment, accelerate development of Nigeria’s hydrocarbon resources and contribute to national energy security and economic growth.

The NUPRC chief linked these expectations to the Federal Government’s goals of raising crude oil output to 2 million barrels per day by 2027 and positioning the country to reach 3 million barrels per day by 2030.

The executive commissioner for Development and Production, NUPRC, Enorense Amadasu, said the Commission has begun speeding up approvals for permits to improve the ease of doing business and pledged support to help the companies meet their commitments.

He urged the awardees to adhere strictly to their work programmes and said the Commission stood ready to assist where possible.

Also speaking, the commission’s secretary and legal adviser, Olayemi Adeboyejo, reiterated the “drill or drop” warning and told the new licence holders to set up their HCDTs “as quickly as possible.”

She advised them to use alternative dispute resolution rather than litigation to ensure smoother relationships with operators and regulators.

Adeboyejo was quoted as saying: “Develop your assets or risk losing them under the ‘drill or drop’ provision of the Petroleum Industry Act.”

Companies presented with licences at the ceremony included 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 release noted that Broron Energy Limited, Petroli Energy Marketing and Supply Limited, Sahara Deepwater Resources Limited and Tulcan Energy E&P received their licences earlier on July 8, 2026.