The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) wants Petroleum Prospecting Licences to move fast on field development while building trust with local communities, in line with the Petroleum Industry Act
The Commission’s Chief Executive Mrs. Oritsemeyiwa Eyesan, gave the charge during the formal issuance ceremony for the second batch of winners from the 2022/2023 Mini Bid Round and the 2024 Licensing Round.
She said success would hinge on how well operators meet their community obligations.
“As licencees, you are expected to execute your approved work programmes diligently, honour your financial commitments, comply fully with the provisions of the PIA, the applicable regulations and these contractual documents,” Eyesan stated.
She added: “The Commission equally expects the highest standards of health, safety, environmental protection and responsible engagement with host communities.”
According to the NUPRC boss, companies awarded blocks under both the 2022/23 Mini Bid and the Nigeria 2024 Licensing rounds are expected to drive new exploration, draw in more investment, speed up the development of Nigeria’s oil and gas resources, and strengthen the country’s energy security and economic growth.
Those goals, she noted, fit directly into the Federal Government’s plan to raise crude oil output to 2 million barrels per day by 2027, and to hit a longer-term goal of 3 million barrels per day by 2030.
Also at the event, the Executive Commissioner for Development and Production, Engineer Enorense Amadasu, urged the awardees to stick to their work plans and financial pledges.
He said the regulator has started fast-tracking permit approvals to make doing business easier, and assured the new operators of full regulatory backing to help them deliver results.
The Commission Secretary and Legal Adviser, Barrister Olayemi Adeboyejo, warned the companies to develop their assets or risk forfeiting them under the PIA’s “drill or drop” clause.
She also urged them to set up their Host Community Development Trusts without delay, and to favor alternative dispute resolution over court battles in order to maintain smooth relations with host communities, operators, and regulators.
Licences were formally presented on to Biswal Oil and Gas Ltd, Dewayles International Ltd, First E&P Development Co. Ltd, Panout Oil and Gas Ltd, R28 Holdings Ltd, and Hakilat Oil and Gas Consortium.
