Mkpoikana Udoma
Port Harcourt — The Nigerian Upstream Petroleum Regulatory Commission, NUPRC, says the era of oil companies holding on to prospecting licences without developing the assets is over, as the regulator moves to enforce stricter compliance under the Petroleum Industry Act, PIA.
The Commission Chief Executive, Oritsemeyiwa Eyesan, disclosed this while receiving the management of the Petroleum Directorate of Sierra Leone during a courtesy visit to the Commission’s headquarters in Abuja.
Eyesan said one of the key provisions of the Petroleum Industry Act is Section 94, which compels operators to either begin development activities on their licences or relinquish them, a regulatory principle widely referred to in the industry as the “drill or drop” rule.
According to her, the enforcement of this provision is already reshaping investment behaviour in Nigeria’s upstream sector.
“The era where companies hold on to prospecting licences without developing them is over,” Eyesan said.
She explained that the implementation of the rule has begun attracting more serious investors into the country’s upstream petroleum industry, particularly in the ongoing 2025 licensing rounds.
“The beauty of the Petroleum Industry Act is that Section 94 compels operators to either commence work on their assets or relinquish the licence. This has helped to bring in more serious investors who are ready to develop the assets,” she said.
Eyesan noted that the development would ultimately strengthen Nigeria’s hydrocarbon portfolio and support efforts to grow the country’s petroleum reserves.
Earlier, the Director-General of the Petroleum Directorate of Sierra Leone, Foday Mansaray, said the purpose of the visit was to understudy Nigeria’s regulatory framework and draw lessons that could help improve Sierra Leone’s emerging hydrocarbon sector.
“Our aim is to understand how Nigeria manages its petroleum sector and apply those lessons to strengthen our own hydrocarbon industry,” Mansaray said.
He also called for deeper cooperation between both countries in the energy sector.
“We believe there is a strong opportunity for collaboration between Sierra Leone and Nigeria in developing a more sustainable and efficient energy sector,” he added.
The visit provided an opportunity for both institutions to exchange ideas on regulatory practices, sector governance, and opportunities for cross-border cooperation within West Africa’s evolving petroleum industry.
