The Nigerian Upstream Petroleum Regulatory Commission has announced plans to enforce the ‘drill or drop’ policy, which requires oil producers to either begin developing allocated oil blocks or relinquish them.

NUPRC Chief Executive, Gbenga Komolafe, made this known during a recent meeting with representatives of the Independent Petroleum Producers Group at the commission’s headquarters in Abuja.

According to a statement, Komolafe emphasized that oil and gas producers must begin production within a set timeframe or forfeit their licenses.

He explained that the ‘drill or drop’ policy is designed to revitalize the oil sector, maximize asset utilization, and increase government revenue.

“Komolafe also discussed the implementation of the ‘drill or drop’ policy, which requires operators to either begin production within a specified timeframe or relinquish their licenses. This policy aims to revitalise the oil sector, ensure optimal use of assets, and boost government revenue,” the NUPRC chief executive was quoted.

It was earlier reported that the Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, had reiterated the government’s commitment to enforcing the ‘drill or drop’ policy, warning that all idle oil wells would be reclaimed from inactive operators.

He outlined several key policies implemented since the enactment of the Petroleum Industry Act, including the automation of regulatory processes such as granting of licenses and permits, which he said have significantly reduced bureaucratic delays and improved operational efficiency across the sector.

The statement noted that the delegation was headed by Mr. Abdulrazaq Isa, who chairs both the Independent Petroleum Producers Group and Waltersmith Group, a Nigerian-owned oil and gas firm.

“The visit was a strategic engagement aimed at strengthening collaboration between the commission and indigenous producers. It also served as an opportunity for the IPPG to formally express its appreciation to the NUPRC for the critical role it played in facilitating the recent divestment of assets by international oil companies.

“These divestments, which were closely overseen by the commission, have enabled a significant transfer of upstream oil and gas assets to indigenous operators. This transition marks a pivotal shift in Nigeria’s energy landscape, creating new opportunities for local companies to scale up operations,” it was stated.