Nigeria’s upstream petroleum regulator, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), has advised newly awarded Petroleum Prospecting Licence (PPL) holders to fast-track investment in their assets and prioritise engagement with host communities in line with the country’s petroleum regulations.
The Commission made the call during the signing ceremony for the second batch of successful bidders under the 2022/2023 Mini Bid Round and the 2024 Licensing Round held in Abuja.
Speaking at the event, NUPRC Chief Executive, Oritsemeyiwa Eyesan, stressed that effective collaboration with host communities was essential for ensuring the smooth implementation and long-term success of oil and gas operations.
She reminded the new licence holders of their obligations under the Petroleum Industry Act (PIA), particularly requirements relating to community engagement and development.
According to Eyesan, the newly awarded licences are expected to stimulate exploration activities, attract fresh investment into Nigeria’s upstream sector, accelerate the development of the country’s hydrocarbon resources and contribute to improved energy security and economic growth.
She said the licensing awards support the Federal Government’s ambition to raise crude oil production to 2 million barrels per day by 2027 and 3 million barrels per day by 2030.
The NUPRC Chief Executive also urged the companies to commence development activities without delay, warning that failure to progress their assets could lead to the loss of their licences under the Petroleum Industry Act’s “drill or drop” policy, which empowers the regulator to revoke undeveloped oil assets.