FG Moves to Reclaim Idle Oil Fields with ‘Use-It-or-Lose-It’ Policy

The Federal Government, through the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), has signaled its intention to revoke oil licences that remain inactive, as part of a renewed push to boost oil production and optimize national energy assets.

During a meeting with members of the Independent Petroleum Producers Group (IPPG) in Abuja, NUPRC Chief Executive Gbenga Komolafe said the Commission is finalizing plans to implement a strict “drill or drop” policy. This initiative mandates oil companies to either begin exploration and production within a stipulated timeframe or risk losing their operating rights.

Komolafe noted that the move is part of ongoing efforts to revitalize the sector, increase government revenue, and ensure that petroleum assets are put to productive use. He emphasized that the commission is focused on creating an investor-friendly regulatory environment, underpinned by reforms introduced through the Petroleum Industry Act (PIA).

The policy aligns with earlier declarations by the Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, who has warned that oil blocks lying fallow would be reclaimed and reallocated.

At the strategic meeting, Komolafe highlighted recent achievements, including the digitalization of regulatory processes, which has reduced bureaucratic delays and improved efficiency in licensing and permit approvals.

Leading the IPPG delegation, Abdulrazaq Isa—also the Chairman of Waltersmith Group—commended the commission for its role in supporting the recent transfer of assets from international oil companies to indigenous players. He said the divestments, managed under NUPRC’s supervision, have allowed more local firms to enter and expand within the upstream sector.

The IPPG also pledged full support for the commission’s “Project One Million Barrels Incremental” initiative, which aims to significantly increase Nigeria’s daily crude oil production. The group reiterated its commitment to contributing to both oil and gas development, while aligning with national energy targets.