The Nigerian Upstream Petroleum Regulatory Commission has declared an end to the practice of oil companies holding exploration licences for years without developing the assets, stating that new provisions under the Petroleum Industry Act now require operators to either develop their fields or relinquish them.

The Commission Chief Executive of NUPRC, Oritsemeyiwa Eyesan, made this known while receiving a delegation from the Petroleum Directorate of Sierra Leone at the commission’s headquarters in Abuja.

Oritsemeyiwa Eyesan also expressed satisfaction with the level of investor interest recorded so far in Nigeria’s 2025 oil licensing round, describing the number of applicants as encouraging despite the stricter bidding conditions introduced by the regulator.

This was contained in a statement issued on Friday by the Head of Media and Corporate Communications at the Nigerian Upstream Petroleum Regulatory Commission, Eniola Akinkuotu.

According to Eyesan, investor response to the licensing round signals renewed confidence in Nigeria’s upstream petroleum sector following regulatory reforms introduced under the Petroleum Industry Act.

She noted that the ongoing exercise features 50 oil blocks on offer, adding that participation has remained strong despite a rule restricting companies to bidding for a maximum of two blocks, whether individually or as part of a consortium.

“For the 2025 licensing round, we have 50 oil blocks on offer. And the outcome of the pre-qualification submission was a demonstration that there is indeed a very good appetite for the bid round,” Eyesan said.

The NUPRC bosd explained that the commission intentionally limited the number of blocks companies can bid for to prevent asset hoarding and encourage broader investor participation.

According to her, the policy is designed to ensure that exploration assets are awarded to companies that are genuinely prepared to invest in and develop them.

She added that the Nigerian Upstream Petroleum Regulatory Commission has also introduced additional measures to strengthen transparency and boost investor confidence in the licensing process.

“In order to ensure total transparency in the licensing round, the commission added an extra layer of validation by partnering with a reputable audit firm to interrogate the system and validate that the system is foolproof. The result of that exercise will be made public just to boost investor confidence,” she stated.

Eyesan, said the introduction of the “drill or drop” provision under Section 94 of the Petroleum Industry Act has fundamentally changed how exploration licences are managed in Nigeria.

She explained that the provision requires operators to either begin exploration and development activities within a specified timeframe or relinquish the licence to the government.