By Opeyemi Adelakun
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has urged winners of the 2022/2023 Mini Bid Round and the 2024 Licensing Round to commence rapid development of their newly awarded oil assets, warning that licences must not be left dormant if Nigeria is to achieve its crude oil production targets.
Speaking at the Petroleum Prospecting Licence (PPL) signing ceremony in Abuja on Friday, the Commission Chief Executive, Oritsemeyiwa Eyesan, said the award of licences marks the beginning of a long-term commitment requiring investment, regulatory compliance and responsible operations.
“As licensees, you are expected to execute your approved work programmes diligently, honour your financial commitments, comply fully with the provisions of the Petroleum Industry Act, the applicable regulations and the contractual documents you are signing today,” Eyesan said.
She stressed that operators must maintain high standards of health, safety, environmental protection and engagement with host communities.
“The Commission equally expects the highest standards of health, safety, environmental protection and responsible engagement with host communities,” she added.
Eyesan noted that the licences awarded under the 2022/2023 Mini Bid Round and the 2024 Licensing Round are expected to attract fresh investments, accelerate exploration activities and contribute to Nigeria’s energy security and economic growth.
She said the Federal Government is targeting crude oil production of two million barrels per day by 2027 and three million barrels per day by 2030, adding that the goals would require sustained investment, operational excellence and strong collaboration between regulators and industry players.
The NUPRC boss assured investors of transparent regulation, timely approvals and an enabling business environment to support upstream development.
Also speaking, the Commission Secretary and Legal Adviser, Olayemi Adeboyejo, reminded the new licence holders that the Petroleum Industry Act contains a strict “drill or drop” provision aimed at preventing asset speculation.
“Companies must commence work promptly or risk forfeiting their licences,” she warned.
Adeboyejo also urged operators to establish their Host Community Development Trusts without delay and embrace alternative dispute resolution mechanisms instead of prolonged litigation.
The Executive Commissioner for Development and Production, Enorense Amadasu, said the Commission had introduced reforms to improve the ease of doing business and would continue to fast-track approvals required for field development.
Companies presented with licences at the ceremony included Biswal Oil and Gas Limited, Dewayles International Limited, First E&P Development Company Limited, Panout Oil and Gas Limited, R28 Holdings Limited and Hakilat Oil and Gas Consortium. Others had earlier received their licences on July 8.
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