en.Wedoany.com Reported - The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has directed holders of newly awarded Petroleum Prospecting Licenses (PPLs) to accelerate asset development or risk license forfeiture under the "drill or drop" clause of the Petroleum Industry Act (PIA). The regulator also urged investors to prioritize corporate social responsibility to ensure operational harmony, warning that strict compliance with host community obligations is a prerequisite for success.
NUPRC Chief Executive Oritsemeyiwa Eyesan issued the directive during the formal signing ceremony for winners of the 2022/2023 mini-bid round and the second batch of the 2024 license round in Abuja. Eyesan stated that license holders must diligently execute approved work programs, fulfill financial commitments, and fully comply with the PIA, applicable regulations, and contractual documents. The commission also expects the highest standards in health, safety, environmental protection, and responsible engagement with host communities.
The federal government relies on the success of these license rounds to reverse declining investment trends and strengthen national energy security. According to the NUPRC chief, the newly awarded blocks are expected to stimulate exploration activities and attract fresh capital to accelerate the development of Nigeria's hydrocarbon resources. The near-term target aligns with the federal government's strategy: increasing crude oil production to 2 million barrels per day by 2027, with a long-term goal of 3 million barrels per day by 2030.
To facilitate these goals, the regulator has pledged to eliminate bureaucratic bottlenecks. Enorense Amadasu, Executive Commissioner for Development and Production, noted that NUPRC has streamlined processes to expedite license approvals and improve ease of doing business for new entrants. However, Commission Secretary and Legal Adviser Olayemi Adeboyejo reminded winners that the PIA does not permit speculative asset holding. Under the "drill or drop" policy, operators who fail to complete agreed work programs within stipulated timelines may lose their licenses.
Adeboyejo also instructed companies to immediately establish their respective Host Community Development Trusts (HCDTs) to avoid community frictions that have historically plagued upstream operations, and advised operators to prioritize alternative dispute resolution (ADR) mechanisms over lengthy litigation in the event of conflicts with regulators or joint venture partners.
Companies awarded licenses on-site 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. Broron Energy Limited, Petroli Energy Marketing and Supply Limited, Sahara Deepwater Resources Limited, and Tulcan Energy E&P had earlier received licenses on July 8, 2026.
