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FG Set to Revoke Dormant Oil Licences with New ‘Drill or Drop’ Policy

Thursday, June 12, 2025 | 9:58 PM WAT Last Updated 2025-06-13T04:58:31Z
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FG Set to Revoke Dormant Oil Licences with New ‘Drill or Drop’ Policy

The Federal Government, through the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), has announced its readiness to enforce the ‘drill or drop’ policy, aimed at compelling oil producers to either commence production within a specified period or forfeit their operating licences.

NUPRC Chief Executive, Gbenga Komolafe, made this known during a recent meeting with a delegation from the Independent Petroleum Producers Group (IPPG) at the commission’s headquarters in Abuja. According to a statement by the commission, Komolafe explained that the policy is designed to revitalise the upstream oil sector, ensure optimal utilisation of assets, and increase government revenue.

He reiterated that any operator holding onto idle assets without progressing to production would be affected. This aligns with the position of the Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, who has consistently pledged that the government would take back unutilised oil wells.

At the meeting, Komolafe also highlighted ongoing reforms since the enactment of the Petroleum Industry Act, such as the automation of regulatory processes, including license and permit approvals. He said these steps have reduced bureaucratic delays and enhanced operational efficiency.

The IPPG delegation was led by its Chairman, Abdulrazaq Isa, who also chairs Waltersmith Group, a Nigerian oil and gas firm. The visit aimed to reinforce collaboration with the NUPRC and acknowledge the commission’s role in facilitating recent asset divestments by international oil companies to indigenous firms.

These divestments, closely supervised by the commission, have led to a major shift in Nigeria’s energy sector, empowering local operators to expand their footprint in the upstream industry.

The IPPG also used the occasion to affirm its support for the NUPRC’s ‘Project One Million Barrels Incremental’ initiative, a strategy to significantly boost Nigeria’s daily crude oil output. The group pledged to align with the commission’s objectives and emphasised its commitment to advancing both oil and gas development in the country.

ADEOLA KUNLE