NUPRC Recovers 50 Oil Fields Under Drill-or-Drop Policy

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has recovered more than 50 fallow oil fields for new development, enforcing provisions of the Petroleum Industry Act (PIA) regarding acreage management. This action aligns with the NUPRC's "drill-or-drop" policy, aimed at preventing the warehousing of awarded blocks by operators.

Olaide Shaw, the NUPRC’s Director of Acreage Management, stated that the recovered fields were returned to the licensing process after previous holders failed to develop them. The commission's policy mandates that companies either advance their work programs or relinquish assets to other investors.

Shaw emphasized that acreage warehousing involves companies holding licenses without any development plans, contrasting it with working acreage that actively engages in development activities. The NUPRC aims to ensure that any undeveloped acreage is returned to the pool for reassignment, thereby enhancing investment and production in Nigeria's upstream oil sector.