The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has urged companies recently awarded petroleum prospecting licences to move quickly with exploration and field development, stressing that idle assets would undermine the country’s oil production ambitions.
The call was made during the signing ceremony for Petroleum Prospecting Licences (PPLs), concessional contracts and General Licence Conditions in Abuja on Friday, where the second batch of successful bidders from the 2022/2023 Mini Bid Round and the 2024 Licensing Round formally received their licences.
Among the companies presented with licences were Biswal Oil and Gas Limited, Dewayles International Limited, First E&P Development Company Limited, Panout Oil and Gas Limited, R28 Holdings Limited, and Hakilat Oil and Gas Consortium. Another set of successful bidders, including Broron Energy Limited, Petroli Energy Marketing and Supply Limited, Sahara Deepwater Resources Limited and Tulcan Energy E&P, had earlier received their licences on July 8.
Speaking at the event, the Commission Chief Executive of the NUPRC, Oritsemeyiwa Eyesan, described the licence awards as the beginning of a long-term obligation requiring significant investment, regulatory compliance and responsible operations.
She noted that the completion of the post-award process marked another step in implementing the Petroleum Industry Act (PIA), adding that the contractual agreements were designed to provide regulatory certainty while safeguarding Nigeria’s interests and encouraging investment.
Eyesan explained that feedback from industry stakeholders had been incorporated into the final licence agreements to create a balanced framework that clearly defines the responsibilities of both the regulator and licence holders.
She urged the companies to execute their approved work programmes, meet all financial obligations and comply with the provisions of the PIA and other applicable regulations.
The NUPRC chief also stressed the need for high standards in health, safety, environmental protection and engagement with host communities, encouraging new entrants to build on operational standards already established within the industry.
She assured investors that the Commission would continue to improve regulatory efficiency through transparent oversight and faster approvals to support upstream project development.
According to Eyesan, the newly awarded licences are expected to stimulate exploration, attract fresh investment and contribute to Nigeria’s goal of increasing crude oil production to two million barrels per day by 2027 and three million barrels per day by 2030.
She added that achieving those targets would require sustained investment, operational efficiency and strong collaboration between government agencies and industry players.
Also speaking at the event, the Commission Secretary and Legal Adviser, Olayemi Adeboyejo, reminded operators that the Petroleum Industry Act contains a “drill or drop” provision, which requires licence holders to either develop their assets within the stipulated period or risk losing them.
She also directed the companies to establish Host Community Development Trusts promptly and encouraged the use of alternative dispute resolution mechanisms to resolve disagreements instead of lengthy court battles.
Meanwhile, the Executive Commissioner for Development and Production, Enorense Amadasu, said the Commission had introduced reforms aimed at improving the ease of doing business in Nigeria’s upstream sector.
He assured the new operators of continued regulatory support while urging them to implement their approved work plans and maintain close engagement with the Commission throughout project execution.
