The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has recovered more than 50 fallow oil fields for fresh licensing rounds as it steps up enforcement of its “drill-or-drop” policy.
The move is aimed at preventing operators from holding petroleum assets without developing them and increasing oil and gas production in Nigeria. The policy is backed by acreage management provisions under the Petroleum Industry Act (PIA). (NUPRC)
Olaide Shaw, Director of Acreage Management at the NUPRC, disclosed this during the commission’s fifth anniversary event in Abuja.
She said the recovered fields had previously been awarded to investors who failed to develop them and have now been returned to the licensing process for investors with the capacity and commitment to work on them.
NUPRC targets acreage warehousing
The regulator is targeting what it describes as “acreage warehousing,” where companies retain oil and gas blocks without committing the required resources to exploration and development.
Under the drill-or-drop approach, operators are expected to either carry out their approved work programmes or relinquish the assets for other investors capable of developing them.
The NUPRC has previously warned holders of underperforming licences that they could face enforcement measures, including licence non-renewal, relinquishment or revocation if they fail to meet their obligations. (Punch Newspapers)
Shaw said active acreage should show evidence of investment, including seismic activities, procurement, drilling preparations and other development work.
The commission has also digitised its processes to reduce delays and improve the speed of approvals for investors. It is working with data providers to make geological and technical information more accessible to potential investors.
Nigeria targets higher oil and gas investment
The enforcement comes as industry operators outline plans to expand production and investment in Nigeria’s upstream sector.
Renaissance Energy CEO Tony Attah said the company plans to increase oil production from about 265,000 barrels per day to 500,000 barrels per day, while targeting one million barrels of oil equivalent per day by 2030.
The company also plans to increase domestic gas supply from about 200 million standard cubic feet per day to 1 billion cubic feet per day, as it seeks to support industrial growth.
Ademola Adeyemi-Bero, CEO of First E&P and Nigeria’s OPEC Governor, said Nigeria could attract about $100 billion in upstream investment if the right conditions are sustained.
He stressed that the investment should generate greater value for Nigerian contractors, service companies, communities and the wider economy.
NUPRC launches 2026 licensing round
The NUPRC has also launched its 2026 licensing round, offering 40 oil and gas blocks across land, shallow-water and deepwater areas.
The commission said the round is targeted at investors with the technical and financial capacity to develop the assets. It has also identified the restoration of more than 788,000 barrels per day of shut-in production as part of its plans to raise national output. (NUPRC)
The regulator said greater predictability, faster project execution and improved access to investment opportunities will be critical to unlocking Nigeria’s upstream potential.
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Meta Description: NUPRC has recovered over 50 fallow oil fields for fresh licensing as Nigeria enforces its drill-or-drop policy to boost oil production.
