By Abubakar Yunusa
The Nigerian Upstream Petroleum Regulatory Commission(NUPRC )has declared that the era of oil companies holding exploration licences for years without developing assets has come to an end.
The commission said new provisions under the Petroleum Industry Act now compel operators to either develop oil fields within a stipulated period or relinquish them.
The Chief Executive of the NUPRC, Oritsemeyiwa Eyesan, made this known while receiving a delegation from Sierra Leone’s Petroleum Directorate at the commission’s headquarters in Abuja.
She expressed satisfaction with investor interest in Nigeria’s 2025 oil licensing round, describing the number of applicants as encouraging despite stricter bidding conditions.
According to a statement issued on Friday by the commission’s Head of Media and Corporate Communications, Eniola Akinkuotu, the response to the exercise reflects renewed confidence in Nigeria’s upstream petroleum sector.
Eyesan noted that about 50 oil blocks are currently on offer in the ongoing bid round. She added that participation remained strong even with a policy limiting companies to bidding for a maximum of two blocks, either individually or in a consortium.
“For the 2025 licensing round, we have 50 oil blocks on offer. The outcome of the pre-qualification submission shows there is indeed a very good appetite for the bid round,” she said.
She explained that the restriction was deliberately introduced to discourage asset hoarding and ensure wider investor participation.
The NUPRC boss also disclosed that the commission had strengthened transparency in the licensing process by engaging an independent audit firm to validate the integrity of its digital bidding system.
“In order to ensure total transparency, we added an extra layer of validation by partnering with a reputable audit firm to interrogate and confirm that the system is foolproof. The result will be made public to boost investor confidence,” she stated.
Eyesan said the “drill or drop” provision under Section 94 of the Petroleum Industry Act had fundamentally changed how exploration licences are managed.
She explained that operators must now commence exploration activities within a specified timeframe or surrender the licence to the government.
“In the past, some operators held licences for up to 20 years and did absolutely nothing. Now we have moved to drill or drop. This has returned more assets to the government’s basket,” she said.
She added that the policy shift could allow Nigeria to conduct licensing rounds more frequently, possibly on an annual basis, while supporting efforts to increase proven crude oil reserves.
Nigeria holds some of Africa’s largest hydrocarbon reserves, but exploration has slowed in recent years due to regulatory uncertainty, security concerns and global energy transition pressures.
Meanwhile, the Director-General of Sierra Leone’s Petroleum Directorate, Foday Mansaray, said his country was seeking to learn from Nigeria’s regulatory experience.
“We are here to collaborate with the NUPRC and learn from Nigeria, our big brothers in the industry,” he said, calling for stronger energy cooperation between both countries.
The 2025 licensing round, launched in December after presidential approval, is expected to run until July 2026 when final awards will be concluded.
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