The Commission charges new PPL licence winners to drive Nigeria’s 3 million bpd production target
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has charged the latest recipients of Petroleum Prospecting Licences (PPLs) to develop the assets quickly or face the risk of forfeiture under the “drill or drop” provisions of the Petroleum Industry Act (PIA).
The directive was delivered on Friday in Abuja during the formal signing ceremony for the second batch of winners from the 2022/2023 Mini Bid Round and the 2024 Licensing Round.
A total of 16 companies are now officially holders of the exploration rights, with 10 receiving their licences at the event and six others having been awarded earlier this month.
According to a statement by the Head, Media and Corporate Communications, NUPRC, Eniola Akinkuotu, the Commission Chief Executive, Mrs. Oritsemeyiwa Eyesan, who presided over the signing ceremony, emphasised that the licences are not merely trophies but binding contracts that carry significant responsibilities.
Eyesan urged the new operators to execute their approved work programmes diligently, honour all financial commitments, and strictly comply with the provisions of the PIA.
“As licensees, 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.
Beyond regulatory compliance, the NUPRC boss underscored the importance of social responsibility, urging the firms to engage responsibly with host communities.
She noted that the success of their operations hinges on establishing the Host Community Development Trusts (HCDT) swiftly to foster a peaceful operating environment.
Eyesan framed the licensing round as a critical component of the Federal Government’s strategic aspirations.
She stressed that the awards are expected to stimulate exploration activities, attract additional investment, and accelerate the development of Nigeria’s hydrocarbon resources.
These efforts, she added, are pivotal to achieving the government’s target of increasing crude oil production to 2 million barrels per day by 2027, with a long-term vision of hitting 3 million barrels per day by 2030.
READ ALSO:
- NUPRC Hails ExxonMobil’s $1bn Investment in Nigerian Deepwater Project as Drilling Resumes After Decade Hiatus
- NUPRC Closes 2025 Licensing Round Bid Submissions June 12
- Nigeria’s Daily Gas Production Hits 7.93bcf as Domestic Sales Surge – NUPRC
- Fight Over Fuel Imports Intensifies Between Dangote, Marketers
- Tinubu’s Executive Order to NNPC Will Block Revenue Leakages, Increase FAAC Disbursements – Experts
Reinforcing this position, the Commission Secretary and Legal Adviser, Barrister Olayemi Adeboyejo, highlighted the consequences of inaction.
Adeboyejo warned the awardees that they must develop their assets or risk losing them, citing the “drill or drop” provision enshrined in the PIA.
“The Commission is serious about ensuring that these assets are not left dormant,” Adeboyejo said.
She also advised the companies to embrace alternative dispute resolution mechanisms over litigation to maintain harmonious relationships with operators and regulators.
In a move to support the new operators, the Executive Commissioner for Development and Production, Engineer Enorense Amadasu, assured the awardees that the Commission has begun to fast-track approvals for permits.
Amadasu stated that the NUPRC is fully prepared to provide the necessary support to ensure their success and improve the ease of doing business in the sector.
The companies presented with their licences at Friday’s ceremony include Biswal Oil and Gas Ltd, Dewayles International Ltd, First E&P Development Co. Ltd, Panout Oil and Gas Ltd, R28 Holdings Ltd, and Hakilat Oil and Gas Consortium.
They join Broron Energy Limited, Petroli Energy Marketing and Supply Limited, Sahara Deepwater Resources Limited, and Tulcan Energy E&P, who received their licences on July 8, 2026.
Victor Ezeja is a Nigerian journalist skilled in producing insightful news analyses, feature stories, and interviews that simplify complex issues and drive informed public discourse. His work combines rigorous research, balanced reporting, and compelling storytelling to highlight developments shaping industries and society. Victor, who holds a Master's Degree in Mass Communication, specializes in energy, aviation, business, and economic reporting. He can be reached via @VICTOREZEJA on X