The Nigerian Upstream Petroleum Regulatory Commission has urged 22 newly licensed petroleum operators to move rapidly from license awards to production, setting an 18-month ambition for first oil and warning that inactive blocks may be recovered under existing law.
Commission Chief Executive Oritsemeyiwa Eyesan delivered the warning at an onboarding workshop in Lagos for recipients of license from the 2022/2023 mini bid round and the 2024 licensing round. She said all 22 awardees had paid their signature bonuses, but stressed that payment alone did not establish the technical and financial ability to develop an asset.
Eyesan said the regulator would begin enforcing the Petroleum Industry Act’s ‘drill or drop’ requirements from October 30. She cited statutory timelines of three years for onshore acreage and five years for offshore acreage, warning that extensions would not be automatic merely because operators were seeking investors or technical partners.
Drawing on earlier licensing exercises, she said some operators had failed to assemble lasting technical teams, resolve shareholder disagreements or secure the systems required to manage production. The commission wants the new awardees to avoid those mistakes and has projected potential output of about 250,000 barrels per day from the assets over five years.
The regulator also plans to work with NNPC Limited to reduce exploration risks in frontier basins. Eyesan said the commission was working to shorten approval timelines and offer clearer guidance without weakening regulatory obligations.
Bankers and industry advisers at the workshop said access to capital would depend on credible technical data, sound governance, compliance with license obligations and clearly documented partnerships. They urged operators to establish fundable work programmes rather than rely solely on ownership of petroleum acreage.
