Mkpoikana Udoma
Port Harcourt — The Nigerian Upstream Petroleum Regulatory Commission, NUPRC, has warned that oil block holders who fail to meet their development obligations risk outright revocation of their licenses, in line with the provisions of the Petroleum Industry Act, PIA.
Chief Executive of the Commission, Engr. Gbenga Komolafe, issued the warning while stressing that undeveloped acreages will not be allowed to lie fallow amid Nigeria’s drive to maximize hydrocarbon value.
“If you have been awarded an oil block and you refuse to develop it in accordance with the terms, it will be revoked,” Komolafe declared.
According to him, every oil block award comes with clear conditions, including timelines for exploration and development, which investors are expected to honour.
“Every award has very clear terms about its tenure, but the clear provisions of the PIA being the instrument that guides our regulatory activities is that unexplored acreages are expected to be relinquished, apart from the clear terms of the award itself,” the NUPRC boss explained.
The warning comes at a time when the Federal Government is under pressure to boost production volumes, attract fresh capital inflows, and shore up dwindling oil revenues.
The enforcement of relinquishment provisions could open up dormant acreages to more serious investors, thereby stimulating competition and accelerating production growth.
Komolafe reaffirmed that the NUPRC will continue to operate strictly within the framework of the PIA, noting that compliance with the law is non-negotiable.
The stance underscores the government’s bid to align regulatory practices with global standards, where idle assets are quickly reassigned to optimize resource development.
By enforcing these provisions, Nigeria hopes to unlock more investment in its upstream sector, improve crude output, and strengthen its fiscal buffers in a challenging oil market.
This article was originally posted at sweetcrudereports.com
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