By Clement Nwabuko
ABUJA (PRECISE POST) – The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has reiterated October 31, 2026, as the deadline for oil and gas licence holders to develop their assets or risk losing them under the Federal Government’s “Drill or Drop” policy.
The commission said undeveloped petroleum blocks would be relinquished to the Federation and reallocated to companies willing and capable of developing them in line with the Petroleum Industry Act (PIA) 2021.
The NUPRC disclosed this in a statement published on its official X handle during the second day of an onboarding programme on Wednesday organised for companies recently awarded petroleum licences.
The commission explained that before the enactment of the PIA in 2021, oil block allocations were largely discretionary, resulting in the award of licences to companies that lacked the technical and commercial capacity to develop the assets.
According to the regulator, the situation left several petroleum fields undeveloped, a challenge it inherited when it was established in 2021.
It said the introduction of the “Drill or Drop” policy, pursuant to Section 94 of the PIA, was aimed at ensuring that holders of petroleum licences commence exploration and development activities within stipulated timelines or surrender their undeveloped acreage to the government.
The commission disclosed that more than 50 fallow fields had been revoked from previous holders, placed in the allocation pool and subsequently awarded to new companies.
It added that the exercise was conducted transparently, citing commendations from industry operators and the Nigeria Extractive Industries Transparency Initiative (NEITI), the government agency responsible for promoting transparency and accountability in the extractive sector.
The NUPRC said the onboarding programme was designed to equip the new licence holders with the knowledge and technical guidance required to avoid the failures of previous operators and accelerate the development of their newly acquired assets.
Among the companies listed as beneficiaries of the recent awards are TotalEnergies, which secured PPL 2000 and 2001; Sahara Energy, awarded PPL 270 and 271; First E&P, which secured PPL 2003 and 2006; and MRS, awarded PPL 303.
Precise Post recalls that about 22 companies, including new entrants into the upstream petroleum sector, are participating in the programme.
The commission said its objective, beyond enforcing regulatory compliance, was to enable the new licensees to progress from exploration to development within the prescribed period and contribute to national production targets.
It projected that the development of the assets could add 250,000 barrels per day to Nigeria’s crude oil output within five years, while creating employment opportunities and increasing government revenue.
The NUPRC Commission Chief Executive, Mrs Oritsemeyiwa Eyesan, reiterated the October 31 deadline, warning that the “Drill or Drop” provision would be fully enforced against companies that had failed to develop their awarded oil and gas blocks.
The regulator urged stakeholders to follow its social media platforms for live coverage of the onboarding programme, featuring commission experts and industry veterans discussing strategies for accelerating the development of petroleum assets.
The “Drill or Drop” policy forms part of efforts to ensure that petroleum resources are developed within stipulated timelines rather than left idle, thereby improving investment, production and revenue generation in Nigeria’s oil and gas industry.
