The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) will no longer allow oil companies to hold onto petroleum prospecting licences without developing the assets.
Its Chief Executive Officer, Oritsemeyiwa Eyesan, declared this while receiving the management team of the Petroleum Directorate of Sierra Leone during a visit to the Commission’s headquarters in Abuja.
The development,she explained, was sequel to the enforcement of the drill or drop provision contained in Section 94 of the Petroleum Industry Act (PIA), which requires operators to either begin exploration activities within a specified period or relinquish their licences, she said.
The provision has addressed long-standing uncertainties in Nigeria’s upstream petroleum sector and prevented companies from holding licences for years without carrying out exploration.
She said:“The PIA opened opportunities for both small and big players because there is now a drill or drop provision in the Act,” she said. “In the past, we had operators who held 20-year licences and sat on these blocks without doing anything. That era is over.”
According to her, the enforcement of the provision has increased investor interest in Nigeria’s oil and gas sector and boosted participation in the ongoing 2025 licensing round.
The Commission, she said, has placed 50 oil blocks on offer in the current bid round, noting that the response from investors has been encouraging.
“For the 2025 licensing round we have 50 oil blocks on offer, and the outcome of the pre-qualification submissions shows there is indeed a strong appetite for the bid round,” she said.
She explained that the licensing guidelines limit each company — whether applying individually or as part of a consortium — to bidding for a maximum of two blocks.
In order to strengthen transparency and investor confidence, Eyesan stated that the Commission engaged an independent audit firm to validate the bidding system.
She said:“We added an extra layer of validation by partnering with a reputable audit firm to interrogate the system and confirm that it is foolproof. The result of that exercise will be made public to further boost investor confidence.”
Speaking, the Director-General of the Petroleum Directorate of Sierra Leone, Foday Mansaray, explained that the visit was aimed at learning from Nigeria’s experience in managing its petroleum sector.
Mansaray stated that Sierra Leone hopes to leverage Nigeria’s expertise to strengthen its hydrocarbon industry and deepen energy cooperation between both countries.
