This development was revealed by NUPRC Chief Executive Gbenga Komolafe during a strategic meeting with the Independent Petroleum Producers Group (IPPG) at the commission’s headquarters in Abuja. The meeting underscored the regulator’s firm stance on eliminating dormant oil assets while strengthening indigenous participation in the upstream sector.
Ensuring Asset Utilisation and Sector Revamp
“The aim is clear,” Komolafe said, according to a statement from the NUPRC. “Operators must either drill and commence production or drop the asset. Idle oil fields cannot be allowed to remain unproductive while Nigeria strives to meet production targets and maximise revenue.”
This policy, he noted, is not just a compliance mechanism, but a strategic lever to revitalise the sector, drive investment, and boost government revenue through enhanced crude output.
Komolafe’s comments echo the position of Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, who has consistently emphasised the government’s intention to reclaim idle wells. Lokpobiri has previously warned that companies sitting on unused oil fields risk having them reallocated.
Regulatory Reforms and Industry Engagement
At the meeting, Komolafe highlighted several regulatory reforms implemented since the passage of the Petroleum Industry Act (PIA), including the automation of licensing processes, which has helped streamline operations and reduce bureaucratic delays for producers.
He also reaffirmed the commission’s goal of fostering a business-friendly environment while ensuring compliance and transparency. “We are not just regulators—we’re also facilitators of industry growth,” he told the IPPG delegation.
The IPPG delegation, led by Chairman Abdulrazaq Isa (who also chairs Waltersmith Group), praised the NUPRC for its role in facilitating recent divestments by international oil companies (IOCs). These divestments, overseen by the commission, have allowed more indigenous players to acquire and develop upstream assets, marking a significant shift toward local ownership in Nigeria’s energy industry.
Indigenous Producers Back 'One Million Barrels' Initiative
In turn, the IPPG reaffirmed its support for the NUPRC’s ‘Project One Million Barrels Incremental’ initiative—an ambitious programme aimed at ramping up Nigeria’s daily crude oil production by one million barrels per day.
The group pledged alignment with national objectives and emphasised its dual focus on oil and gas development, suggesting readiness to contribute meaningfully to Nigeria’s energy future.
Broader Implications
The enforcement of the 'drill or drop' policy is poised to send a clear message across the sector: resource hoarding will no longer be tolerated, and productive utilisation of Nigeria’s hydrocarbon assets is now a national imperative. While the policy could force out underperforming or speculative license holders, it also opens the door for more capable players—particularly indigenous firms—to step in and scale operations.
As Nigeria works to regain momentum in its oil output, which has been hampered by years of underinvestment, regulatory delays, and oil theft, the NUPRC's tough stance could be a critical inflection point.
In the words of Komolafe, “Nigeria cannot afford to leave valuable resources untapped. Every barrel counts.”