The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has restated October 31, 2026, as the deadline for holders of oil and gas blocks who have failed to develop their assets, warning that undeveloped acreage will be relinquished to the Federal Government under its “drill or drop” policy.
The commission said the policy, which requires holders of petroleum licences to commence exploration and development within stipulated timelines or surrender their assets, is aimed at ending the practice of keeping oil blocks idle and accelerating Nigeria’s crude oil production.
The NUPRC, established in 2021 following the enactment of the Petroleum Industry Act (PIA), said the enforcement of the policy had already led to the revocation of more than 50 undeveloped oil blocks, which were subsequently reallocated to new companies.
In a statement posted on X, the NUPRC said the policy is anchored on Section 94 of the PIA, which provides for the relinquishment of petroleum acreage where licence holders fail to meet their obligations.
The commission said the previous discretionary approach to oil block allocation had resulted in the award of assets to companies that lacked the technical and commercial capacity to develop them, leaving several fields dormant.
To prevent a recurrence, the NUPRC has organised an onboarding programme for new awardees to equip them with the technical knowledge and operational guidance required to develop their assets within the shortest possible time.
About 22 companies are participating in the programme, including TotalEnergies, which won Petroleum Prospecting Licences (PPLs) 2000 and 2001; Sahara Energy, awarded PPLs 270 and 271; First E&P, which secured PPLs 2003 and 2006; and MRS, which won PPL 303.
The commission said the onboarding programme was designed to help the new licensees avoid the mistakes of previous operators and ensure that the newly allocated assets contribute to national production.
Under the programme, the companies are expected to progress from exploration within 18 months and collectively add 250,000 barrels per day to Nigeria’s crude oil production within five years.
The commission said achieving the target would boost government revenue, create employment opportunities and improve the development of Nigeria’s petroleum resources.
The NUPRC added that the revocation and reallocation process had been conducted transparently, citing the endorsement of operators and the Nigeria Extractive Industries Transparency Initiative (NEITI), the government agency responsible for promoting transparency and accountability in the extractive sector.
The commission reiterated that the October 31 deadline would be enforced, warning that oil and gas blocks that remain undeveloped after the deadline would be returned to the Federation and made available to companies willing and capable of developing them.
The onboarding programme, which entered its second day, features NUPRC technical experts and external industry veterans discussing strategies for accelerating the exploration and development of oil and gas assets.
ENDS
