THE Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has issued a firm directive to the latest holders of Petroleum Prospecting Licences, warning them to expedite field development, honour financial commitments, and build trust with host communities or risk losing their assets under the “drill or drop” clause of the Petroleum Industry Act (PIA).
The warning came during the formal issuance ceremony for the second batch of winners from the 2022/2023 Mini Bid Round and the 2024 Licensing Round, held in Abuja on Friday, July 17, 2026.
Community Engagement Non-Negotiable
Commission Chief Executive, Mrs. Oritsemeyiwa Eyesan, stressed that success for the new licencees will hinge largely on how well they meet their community obligations.
“As licencees, you are expected to execute your approved work programmes diligently, honour your financial commitments, comply fully with the provisions of the PIA, the applicable regulations and these contractual documents,” Eyesan stated.
She added: “The Commission equally expects the highest standards of health, safety, environmental protection and responsible engagement with host communities.”
Driving National Production Targets
According to the NUPRC boss, companies awarded blocks under both licensing rounds are expected to drive new exploration, draw in more investment, speed up the development of Nigeria’s oil and gas resources, and strengthen the country’s energy security and economic growth.
These goals, she noted, align directly with the Federal Government’s ambitious plan to raise crude oil output to 2 million barrels per day by 2027, and to hit a longer-term target of 3 million barrels per day by 2030.
Regulatory Support and Fast-Tracked Approvals
Executive Commissioner for Development and Production, Engineer Enorense Amadasu, urged the awardees to stick to their work plans and financial pledges. He confirmed that the regulator has begun fast-tracking permit approvals to improve the ease of doing business, and assured the new operators of full regulatory backing to help them deliver results.
‘Drill or Drop’ Warning
Commission Secretary and Legal Adviser, Barrister Olayemi Adeboyejo, delivered a stark warning to the companies: develop their assets or risk forfeiting them under the PIA’s “drill or drop” clause.
She also urged them to establish their Host Community Development Trusts without delay, and to favour alternative dispute resolution over court battles in order to maintain smooth relations with host communities, operators, and regulators.
Licence Recipients
Licences were formally presented on Friday to:
· Biswal Oil and Gas Ltd
· Dewayles International Ltd
· First E&P Development Co. Ltd
· Panout Oil and Gas Ltd
· R28 Holdings Ltd
· Hakilat Oil and Gas Consortium
Four other firms—Broron Energy Limited, Petroli Energy Marketing and Supply Limited, Sahara Deepwater Resources Limited, and Tulcan Energy E&P—had collected their licences earlier on July 8, 2026.
The development marks a significant step in Nigeria’s efforts to revitalise its upstream petroleum sector, attract foreign investment, and meet its ambitious production targets under the reform-driven framework of the Petroleum Industry Act.
