NUPRC sets 31 October deadline for undeveloped oil blocks
- The NUPRC says oil and gas blocks left undeveloped after 31 October will be taken back by the Federal Government.
- The commission says more than 50 idle blocks have already been revoked and reallocated to new companies.
- About 22 new licensees are in an onboarding programme expected to add 250,000 barrels per day within five years.
Companies holding oil and gas blocks they have not developed have until 31 October 2026 to start work or lose the assets. The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) restated the deadline this week, saying blocks still idle after that date will return to the Federal Government.
The commission calls the rule “drill or drop”. It is anchored on Section 94 of the Petroleum Industry Act (PIA) 2021, which allows the government to take back petroleum acreage when licence holders fail to meet their obligations.
According to the NUPRC, the policy is meant to end the old practice of holding oil blocks without developing them. The commission said past allocations were largely discretionary, and some companies without the technical or commercial capacity to develop the fields still got licences.
More than 50 blocks already revoked
The NUPRC said it has already revoked more than 50 undeveloped blocks and reallocated them to new investors. It said the exercise was done transparently, and that industry operators and the Nigeria Extractive Industries Transparency Initiative (NEITI) endorsed it. NEITI is the government agency that promotes transparency in the extractive sector.
To help the new owners avoid the mistakes of the past, the commission has started an onboarding programme. About 22 companies are taking part, including TotalEnergies, which won Petroleum Prospecting Licences (PPLs) 2000 and 2001; Sahara Energy, with PPLs 270 and 271; First E&P, with PPLs 2003 and 2006; and MRS, which secured PPL 303.
The NUPRC said the new licensees are expected to move from exploration within 18 months. Together, they are to add 250,000 barrels per day to Nigeria’s crude oil production within five years.
The commission’s chief executive, Mrs Oritsemeyiwa Eyesan, reiterated the 31 October deadline and warned that the drill-or-drop rule would be fully enforced, according to the Independent.
Why it matters
Nigeria earns most of its foreign exchange and a large share of government revenue from crude oil. More production means more money for the Federation Account, which funds federal, state and local government spending. The NUPRC said the target would also create jobs.
For ordinary Nigerians, the effect is indirect but real: stronger oil earnings can ease pressure on the naira and on government budgets. The gains depend on the new operators actually drilling, not just holding licences.
What happens next: The 31 October deadline stands. Blocks still undeveloped after that date will be returned to the Federation and offered to companies the commission considers willing and able to develop them.
