Nigeria’s oil sector drill drop policy is now set for full implementation, signalling a major regulatory shift aimed at revitalising the upstream petroleum industry.
This will enable the regulatory agency to enforce production timelines, reclaim idle wells, and boost revenue through local operator expansion
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The Nigerian Upstream Petroleum Regulatory Commission (NUPRC), which announced its readiness to enforce the policy, said the arrangement mandates oil producers to either commence production within a specific period or surrender their licences.
During a recent meeting with the Independent Petroleum Producers Group (IPPG) at the commission’s headquarters in Abuja, NUPRC’s Chief Executive, Engr. Gbenga Komolafe emphasised that the ‘drill or drop’ policy was introduced to optimise the use of oil assets, enhance production, and increase government revenue.
The move aligns with previous declarations by the Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, who has consistently vowed to repossess idle oil wells from operators failing to utilise them.
According to him, underutilised resources will no longer be tolerated as the country pursues aggressive production targets.
Komolafe also highlighted a series of reforms that have followed the enactment of the Petroleum Industry Act. These include the automation of licensing and permit processes, which have minimised delays and significantly improved efficiency within the sector.
He reiterated the commission’s commitment to creating a favourable environment for investment and operational growth.
The visiting IPPG delegation, led by Chairman Abdulrazaq Isa commended the NUPRC for facilitating recent asset divestments by international oil companies.
These transactions have enabled a strategic shift in Nigeria’s energy framework, with a growing share of upstream assets now in the hands of indigenous operators.
The delegation described the engagement as a key step in strengthening collaboration with regulators. They also expressed support for the commission’s ‘Project One Million Barrels Incremental’ initiative, which aims to boost the country’s daily crude oil output. The group reaffirmed its focus on expanding both oil and gas production to meet national energy goals.
This enforcement of the ‘drill or drop’ policy marks a significant turning point in the sector. It prioritises active utilisation of oil resources and ensures that valuable petroleum assets do not remain dormant under non-performing operators.
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As indigenous companies take on larger roles, the policy is expected to drive growth, generate employment, and increase the country’s fiscal returns from hydrocarbon resources.
