Nigeria has warned oil and gas exploration companies that have been awarded oil blocks to begin exploration and production or face license revocation.
The Chief Executive of Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Gbenga Komolafe, recently issued a warning in Abuja during a visit to his office by Independent Petroleum Producers Group (IPPG), emphasising that oil and gas producers must either begin production within a specified timeframe or relinquish their licenses.
According to him, the policy aims to revitalise the oil sector, ensure optimal use of assets, and boost government revenue.
Komolafe discussed the implementation of the ‘drill or drop’ policy, which requires operators to either begin production within a specified timeframe or relinquish their licences.
“This policy aims to revitalise the oil sector, ensure optimal use of assets, and boost government revenue,” he stated.
This portal understands that during the discussion with the IGGP, Komolafe reiterated the dedication of NUPRC to creating an enabling business environment.
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 had significantly reduced bureaucratic delays and improved operational efficiency across the sector.
The IPPG Chairman, Mr Abdulrazaq Isa, who also serves as the Chairman of Waltersmith Group, an indigenous oil and gas company, stated that the visit was a strategic engagement aimed at strengthening collaboration between the commission and indigenous producers.
He said it 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,” he said.
During the meeting, the IPPG reportedly reaffirmed its commitment to supporting the commission’s ’Project One Million Barrels Incremental’ initiative—a programme designed to boost Nigeria’s daily crude oil production.
The group emphasised its readiness to align with this national objective and highlighted its dual focus on both oil and gas development
Source: https://energynewsafrica.com
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