Nigeria: NUPRC Urges New Oil Licence Holders To Tnvest Quickly, Engage Host Communities

Nigeria’s upstream oil regulator has urged newly awarded holders of Petroleum Prospecting Licences (PPLs) to accelerate investment in their assets and fulfill their obligations to host communities under the country’s petroleum law.

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) made the call during the signing ceremony for the second batch of winners of the 2022/2023 Mini Bid Round and the 2024 Licensing Round in Abuja on Friday.

NUPRC Chief Executive Oritsemeyiwa Eyesan said licence holders should prioritise engagement with host communities as required under the Petroleum Industry Act (PIA), describing it as critical to the success of their operations.

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She said the licences awarded under the 2022/2023 Mini Bid Round and the 2024 Licensing Round are expected to boost exploration activity, attract investment, accelerate the development of Nigeria’s hydrocarbon resources and support the country’s energy security and economic growth.

Eyesan said the awards are aligned with the federal government’s target of increasing crude oil production to 2 million barrels per day by 2027 and 3 million barrels per day by 2030.

She also urged the new licence holders to move quickly to develop their assets or risk forfeiting them under the Petroleum Industry Act’s “drill or drop” provision, which allows the regulator to revoke undeveloped licences.