NUPRC to Revoke Licences of Idle Oil Blocks
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has announced its intention to revoke the licences of oil block owners who fail to commence exploration and production activities.
This decision was disclosed by the Commission’s Chief Executive Officer, Gbenga Komolafe, during the 2024 Licencing Rounds Commercial Bid Conference held in Lagos.
Describing oil blocks as critical national assets, Komolafe emphasized the need to ensure these resources are fully utilized to drive economic growth. “Oil blocks are national assets and must not remain idle,” he stated.
To enforce this, the NUPRC plans to activate the “Drill or Drop” provision of the Petroleum Industry Act (PIA), which allows for the reassignment of underutilized blocks to more active bidders in future licencing rounds.
The 2024 bid exercise marks the first licencing round since the PIA’s enactment in 2022 and is aimed at unlocking Nigeria’s untapped hydrocarbon potential, boosting productivity, and attracting new investors to the oil and gas sector. A total of 30 oil fields were offered to the public during this round, with 25 fields successfully bid for, while six fields remained unclaimed.
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Looking ahead, the NUPRC announced plans for a 2025 bid round that will focus on undeveloped fields, fallow assets, and natural gas development. This initiative aligns with Nigeria’s commitment to the United Nations Sustainable Development Goals (SDGs), particularly in promoting sustainable energy practices and maximizing the country’s resource potential.
The revocation of inactive licences underscores the government’s determination to optimize the value of Nigeria’s oil and gas assets, ensuring they contribute meaningfully to national development.
By reassigning idle blocks to more capable investors, the NUPRC aims to foster increased exploration and production activities, further cementing Nigeria’s position as a major player in the global energy market.
