FG Activates Policy To Reclaim 15 Oil Wells From Operators, Details Emerge

• The federal government has activated the process to reclaim 15 oil wells from the operators due to major defaults
• The government earlier listed provisions for the operators to meet to be considered eligible for licence renewal
• Barely two weeks to the expiration of the licences, 40 operators are yet to meet the requirements and now risk losing them to the government

Legit.ng journalist Ruth Okwumbu-Imafidon has over a decade of experience in business reporting across digital and mainstream media.

The federal government has concluded plans to implement the ‘drill or drop’ policy in Nigeria, and reclaim oil wells that have remained unused since the award of the operating licences.

This means that by the end of June 2025, A.A. Rano, Northwest Petroleum, Ardova Plc, and 37 other operators will lose their petroleum exploration or mining licences.

The Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Gbenga Komolafe, told members of the Independent Petroleum Producers Group that the federal government is set to activate the policy.

While receiving a delegation from the group at Abuja, Komolafe stressed that oil and gas producers are expected to begin production within a specified time frame after securing the licence, or risk losing it altogether.

He noted that the policy was not meant to punish anyone but to ensure optimal use of Nigeria’s oil assets and improve crude oil production.

Operators rush to convert licences

In an earlier report, Legit.ng confirmed that several operators had applied to convert their Petroleum Prospecting Licences (PPL) to Petroleum Mining Leases (PML) ahead of the June 27, 2025, deadline.

This would give them a fighting chance to renew their licence after it has expired on the said date.

Recall that the NUPRC boss noted that energy operators must show a work plan or evidence of work commenced to be able to renew their licences after the three-year timeframe from when the licences were first awarded in 2022.

Operators unable to prove that they have commenced exploration or drilling will have to forfeit their licence upon expiration.

A.A. Rano, Northwest Petroleum, and others affected

According to the data on the NUPRC website, about 40 operators are affected.

Some of them are Ardova Plc, Petrodev, Suntrust Oil Company, Petrogas Energy, Sonora GTP Ltd, Erebina Energy Resources Limited, Omega-Butter Marginal Fields Ltd, Intessa Energy Ltd, Platform Petroleum, Shepherdhill, and Nord Oil.

Also affected are: Deep Offshore Integrated, Virgin Forest, Oceangate Engineering Oil, Northwest Petroleum, Genesis Technical, Gab & Nutella, Matrix Energy and Bono Energy Ltd, Sterov Consortium, Energia and Annajul Rosari, Odu’a Investment Company and Pioneer Global Resource & Integrated Energy Ltd, and several others.

This move directly affects several Nigerian billionaires, including Winifred Akpani, who is the founder and Chief Executive of Northwest Petroleum, AbdulWasiu O. Sowami, the owner of Ardova Plc, and Alhaji Auwalu Abdullahi Rano, the founder and Chairman of A.A. Rano.

Legit.ng listed the 15 oil wells to be reclaimed in an earlier report.

FG to reclaim oil wells after three years

The NUPRC boss reiterated this requirement to the delegation, insisting that the government would take over the idle oil wells from the operators.

Komolafe, however, assured the group that the NUPRC is committed to creating an enabling business environment for all operators in the energy sector.

He referenced the automation of regulatory processes, such as the granting of permits and licences, which reduced bureaucratic delays.

According to the PUNCH, the delegation was led by the IPPG Chairman, Mr Abdulrazaq Isa, who is also the Chairman of Waltersmith Group, an indigenous oil and gas company.

The group pledged commitment to support NUPRC’s ’Project One Million Barrels Incremental’ initiative and contribute to boosting Nigeria’s crude oil production.

‘FG announces drill or drop policy’

Note that the federal government has reiterated its intention to revoke all dormant oil licences, as a way to address the low oil revenues.

The Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, stated that the government would take over more than 40 idle oil wells from their operators, under the ‘drill or drop’ policy, unless they can present a work plan.

FG to revoke licences of Shell, others

In related news, the Nigerian government has threatened to revoke the licences of Shell, Mobil and other foreign oil firms.

Legit.ng reported that the oil companies were accused of diverting crude oil meant for local consumption.

NUPRC warned that it would deny oil exploration and production companies permits for oil export if they fail to prioritise the local market.

Proofreading by James Ojo, copy editor at Legit.ng.

Source: Legit.ng