FAVOUR ISHEMBER, Abuja
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has announced that oil companies can no longer hold onto prospecting licenses without developing their assets, marking a significant shift in policy.
NUPRC Chief Executive, Mrs. Oritsemeyiwa Eyesan, made the statement during a meeting with the Petroleum Directorate of Sierra-Leone at the Commission’s Abuja headquarters.
She highlighted Section 94 of the Petroleum Industry Act (PIA), which requires operators to either start work or relinquish their licenses, a policy known as “drill or drop”.
According to Eyesan, enforcing this provision has attracted serious investors to the 2025 licensing rounds, which is expected to boost Nigeria’s petroleum reserves.
She noted that the PIA has created opportunities for both small and large players, eliminating uncertainties and promoting active development of oil blocks.
The NUPRC boss stated that the era of companies holding licenses for 20 years without activity is over, and the Commission now has more assets to offer in annual bid rounds.
Eyesan also welcomed the impressive number of applicants for the 2025 licensing round, noting that the guideline limiting companies to bidding on two out of 50 oil blocks has contributed to the interest.
She stated, “For the 2025 licensing round we have 50 oil blocks on offer.
And the outcome of the pre-qualification submission was a demonstration that there is indeed a very good appetite for the bid round.”
Eyesan said in order to ensure total transparency in the licensing round, the NUPRC had added an extra layer of validation by partnering with a reputable audit firm to interrogate the system and validate that the system is full proof.
“The result of that exercise will be made public just to boost investor confidence,” she stated.
On his part Sierra Leone’s Petroleum Directorate Director-General, Foday Mansaray, stated that his visit aimed to gain insights into Nigeria’s petroleum industry, with the goal of enhancing his country’s own hydrocarbon sector. He emphasized the need for stronger, sustainable energy cooperation between Sierra Leone and Nigeria.
“We’re here to work with NUPRC on a bilateral level and learn from Nigeria, our industry leaders.
Despite being a small nation of 8 million, we’re ambitious,” Mansaray said, pushing for a Memorandum of Understanding (MoU) signing.
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