The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has cautioned companies holding petroleum prospecting licences without actively developing them that such practices will no longer be tolerated.
The Commission’s Chief Executive, Oritsemeyiwa Eyesan, issued the warning while hosting a delegation from the Petroleum Directorate of Sierra Leone at the Commission’s headquarters in Abuja.
According to Eyesan, Section 94 of the Petroleum Industry Act requires licence holders to begin exploration activities within a specified period or surrender the asset. The provision, widely referred to as the “drill or drop” rule, is intended to ensure that allocated oil blocks are actively developed rather than left idle.
She explained that the enforcement of this rule has already begun to attract more committed investors to Nigeria’s ongoing 2025 licensing rounds, a development expected to strengthen the country’s petroleum reserves.
During the visit, Director-General of the Petroleum Directorate of Sierra Leone, Foday Mansaray, said the delegation’s visit was aimed at gaining insight into Nigeria’s petroleum regulatory framework.
He noted that the lessons learned from Nigeria’s experience could help Sierra Leone improve the management and development of its own hydrocarbon sector.
Mansaray also emphasised the need for stronger cooperation between Nigeria and Sierra Leone in advancing sustainable energy development across the region.