NUPRC orders new oil licensees to fast-track development
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has directed companies awarded petroleum prospecting licences under the 2022/2023 Mini Bid Round and the 2024 Licensing Round to begin rapid development of their oil assets, warning against leaving licences dormant.
Speaking at the Petroleum Prospecting Licence signing ceremony in Abuja on Friday, the Commission Chief Executive, Oritsemeyiwa Eyesan, said the licences marked the beginning of a long-term commitment requiring investment, regulatory compliance, environmental stewardship and responsible engagement with host communities.
*NUPRC
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has directed companies awarded petroleum prospecting licences under the 2022/2023 Mini Bid Round and the 2024 Licensing Round to begin rapid development of their oil assets, warning against leaving licences dormant.
Speaking at the Petroleum Prospecting Licence signing ceremony in Abuja on Friday, the Commission Chief Executive, Oritsemeyiwa Eyesan, said the licences marked the beginning of a long-term commitment requiring investment, regulatory compliance, environmental stewardship and responsible engagement with host communities.
She said the successful completion of the post-award process represented another milestone in the implementation of the Petroleum Industry Act (PIA) and the strengthening of Nigeria’s upstream regulatory framework.
“The execution of these contractual instruments represents the successful completion of the rigorous post-award process following the 2022/2023 Mini Bid Round and the Nigeria 2024 Licensing Round,” Eyesan said.
She urged the new licence holders to execute their approved work programmes diligently, meet all financial obligations and comply fully with the PIA, applicable regulations and contractual terms.
“The Commission equally expects the highest standards of health, safety, environmental protection and responsible engagement with host communities,” she said.
Eyesan stressed that rapid field development would 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.
She assured investors of transparent regulation, timely approvals and an enabling business environment to accelerate upstream investments and field development.
Commission Secretary and Legal Adviser, Olayemi Adeboyejo, reminded the companies that the PIA’s “drill or drop” provision requires operators to commence exploration promptly or risk losing their licences.
She also directed the companies to establish their Host Community Development Trusts without delay and resolve disputes through alternative dispute resolution mechanisms where necessary.
Executive Commissioner for Development and Production, Enorense Amadasu, said the Commission had introduced measures to improve the ease of doing business and expedite regulatory approvals for field development.
The signing ceremony formalised the execution of petroleum prospecting licence agreements for the second batch of successful bidders under the 2022/2023 Mini Bid Round and the 2024 Licensing Round.
Companies that received licences at the ceremony included Biswal Oil and Gas Limited, Dewayles International Limited, First E&P Development Company Limited, Panout Oil and Gas Limited, R28 Holdings Limited and Hakilat Oil and Gas Consortium. Broron Energy Limited, Petroli Energy Marketing and Supply Limited, Sahara Deepwater Resources Limited and Tulcan Energy E&P had received their licences earlier this month.
