NUPRC Urges New Licence Holders To Fast-track Oil Exploration

• The NUPRC has urged newly licensed operators to begin field development without delay.

• The commission warned that dormant licences could undermine Nigeria’s crude oil production targets.

• New operators were directed to comply with the Petroleum Industry Act and engage host communities responsibly.

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has charged beneficiaries of the 2022/2023 Mini Bid Round and the 2024 Licensing Round to accelerate the development of their newly awarded oil assets.

Speaking during the Petroleum Prospecting Licence signing ceremony in Abuja on Friday, the Commission Chief Executive, Oritsemeyiwa Eyesan, said the award of licences marks the beginning of a long-term commitment that requires investment, regulatory compliance and responsible operations.

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She urged the new licence holders to promptly execute their approved work programmes, warning against allowing petroleum assets to remain dormant if Nigeria is to achieve its crude oil production targets.

Eyesan said the successful completion of the post-award process represents another milestone in the implementation of the Petroleum Industry Act (PIA) and efforts to strengthen the country’s upstream petroleum sector.

She noted that the contractual agreements were developed after extensive consultations with stakeholders and are designed to provide a stable legal and commercial framework for petroleum exploration and investment.

The NUPRC boss also directed the operators to uphold high standards of health, safety and environmental protection while maintaining responsible relationships with their host communities.

According to her, the licences are expected to boost exploration activities, attract fresh investments and support the Federal Government’s target of increasing crude oil production to two million barrels per day by 2027 and three million barrels per day by 2030.

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Eyesan assured investors of the commission’s commitment to transparent regulation, timely approvals and an enabling business environment to support sustainable growth in the upstream sector.

Also speaking, the Commission Secretary and Legal Adviser, Olayemi Adeboyejo, reminded the new licence holders that the Petroleum Industry Act contains a strict “drill or drop” provision, warning that operators who fail to commence exploration risk forfeiting their licences.

She also urged the companies to establish their Host Community Development Trusts without delay and embrace alternative dispute resolution mechanisms to resolve disagreements.

The Executive Commissioner for Development and Production, Enorense Amadasu, said the commission had introduced measures to improve the ease of doing business and would continue to fast-track approvals required for field development.