FG introduces 'drill or drop' policy to boost oil production in Nigeria

• The NUPRC introduced the "drill or drop" policy, which mandates that oil producers either begin production or relinquish their licenses within a specified timeframe to boost government revenue
• NUPRC Chief Executive Gbenga Komolafe highlighted measures to foster a business-friendly environment, including automating licensing and permitting procedures
• The Independent Petroleum Producers Group (IPPG) expressed its support for the NUPRC's efforts, including the "Project One Million Barrels Incremental" plan aimed at increasing Nigeria's daily crude oil production

Legit.ng journalist Zainab Iwayemi has 5-year-experience covering the Economy, Technology, and Capital Market.

Oil producers have been informed by the Nigerian Upstream Petroleum Regulatory Commission that the "drill or drop" policy will be put into effect.

This was revealed by Gbenga Komolafe, the NUPRC's Chief Executive, during a recent reception at the commission's Abuja offices for a team from the Independent Petroleum Producers Group.

Komolafe emphasized that oil and gas producers must either release their licenses or begin production within a given timeframe, according to a statement released by the NUPRC. He said the goal of the program was to increase government revenue, guarantee the best possible use of assets, and revitalise the oil industry.

“Komolafe also discussed the implementation of the ‘drill or drop’ policy, which requires operators to either begin production within a specified timeframe or relinquish their licenses. This policy aims to revitalise the oil sector, ensure optimal use of assets, and boost government revenue,” the NUPRC Chief Executive was quoted as saying.

According to The PUNCH, Heineken Lokpobiri, the Minister of State for Petroleum Resources (Oil), has repeatedly stated that the government will take over all idle oil wells from operators who are clinging onto them.

During the meeting, Komolafe greeted the delegation and reaffirmed the NUPRC's commitment to fostering a business-friendly atmosphere.

He listed a number of important measures put in place since the Petroleum Industry Act was passed, such as the automation of licensing and permit issuance procedures, which he claimed has greatly reduced red tape and increased industry-wide operational efficiency.

According to the release, Mr. Abdulrazaq Isa, the Chairman of the IPPG and the Chairman of the domestic oil and gas firm Waltersmith Group, led the trip.

Oil producers have been informed by the Nigerian Upstream Petroleum Regulatory Commission that the "drill or drop" policy will be put into effect.

NNPC reports N5.8 trillion revenue

Oil producers have been informed by the Nigerian Upstream Petroleum Regulatory Commission that the "drill or drop" policy will be put into effect.

This was revealed by Gbenga Komolafe, the NUPRC's Chief Executive, during a recent reception at the commission's Abuja offices for a team from the Independent Petroleum Producers Group.

Komolafe emphasized that oil and gas producers must either release their licenses or begin production within a given timeframe, according to a statement released by the NUPRC. He said the goal of the program was to increase government revenue, guarantee the best possible use of assets, and revitalise the oil industry.

“Komolafe also discussed the implementation of the ‘drill or drop’ policy, which requires operators to either begin production within a specified timeframe or relinquish their licenses. This policy aims to revitalise the oil sector, ensure optimal use of assets, and boost government revenue,” the NUPRC Chief Executive was quoted as saying.

According to The PUNCH, Heineken Lokpobiri, the Minister of State for Petroleum Resources (Oil), has repeatedly stated that the government will take over all idle oil wells from operators who are clinging onto them.

During the meeting, Komolafe greeted the delegation and reaffirmed the NUPRC's commitment to fostering a business-friendly atmosphere.

He listed a number of important measures put in place since the Petroleum Industry Act was passed, such as the automation of licensing and permit issuance procedures, which he claimed has greatly reduced red tape and increased industry-wide operational efficiency.

According to the release, Mr. Abdulrazaq Isa, the Chairman of the IPPG and the Chairman of the domestic oil and gas firm Waltersmith Group, led the trip.

Oil producers have been informed by the Nigerian Upstream Petroleum Regulatory Commission that the "drill or drop" policy will be put into effect.

NNPC reports N5.8 trillion revenue

Legit.ng reported that the Nigerian government may have serious concerns about its oil revenues, given the decline in crude oil production.

The Nigerian National Petroleum Corporation Limited (NNPCL) has released its April 2025 Monthly Report, providing insights into the oil and gas sector.

A major highlight of the report is that Nigeria’s crude oil production is still below what it was at the beginning of the year.

Source: Legit.ng