By Anthony Isaac
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has restated October 31, 2026, as the deadline for oil and gas companies that have failed to develop their allocated blocks, warning that the licences will be revoked and the assets returned to the Federation.
The Commission Chief Executive, Mrs. Oritsemeyiwa Eyesan, reiterated the deadline during the ongoing onboarding programme for new holders of petroleum prospecting licences (PPLs), stressing that the “drill or drop” policy would be fully enforced.
Under the policy, companies awarded petroleum licences are required to commence exploration and development activities within stipulated timelines or surrender the undeveloped acreage to the government.
The commission said the measure was being implemented in line with Section 94 of the Petroleum Industry Act (PIA) 2021, which provides the legal basis for enforcing development obligations on licence holders.
According to the NUPRC, the October 31 deadline is intended to ensure that oil and gas assets are developed by companies with the technical and commercial capacity to exploit them, rather than remain idle.
The commission explained that, before the enactment of the PIA, oil block allocations were largely discretionary, resulting in several companies obtaining licences without the capacity to develop the assets.
It said the NUPRC inherited the situation when it was established in 2021 and subsequently introduced the “drill or drop” policy to address the problem.
The regulator disclosed that more than 50 undeveloped fields had already been revoked, returned to the pool of available assets and subsequently awarded to new companies.
It added that the revocation and reallocation process was conducted transparently, with operators and the Nigeria Extractive Industries Transparency Initiative (NEITI) attesting to the process.
Among the companies that secured the new licences are TotalEnergies, which won PPL 2000 and PPL 2001; Sahara Energy, awarded PPL 270 and PPL 271; First E&P, which secured PPL 2003 and PPL 2006; and MRS, awarded PPL 303.
The commission said about 22 companies, including new entrants into the upstream petroleum sector, were participating in the onboarding programme.
It explained that the programme was designed to familiarise the new licence holders with their obligations and help them avoid the mistakes of previous operators whose failure to develop the assets led to the revocation of their licences.
The NUPRC said it was focusing on its role as a business enabler by supporting the new awardees to move from the exploration stage within 18 months and, within five years, contribute an additional 250,000 barrels per day to Nigeria’s crude oil production.
The target, it said, would help increase national oil output, create employment opportunities and boost government revenue.
The commission maintained that the return of undeveloped blocks to the Federation would provide opportunities for capable investors to develop the assets and unlock their production potential.
