The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has urged newly awarded holders of Petroleum Prospecting Licences (PPLs) to fast-track the development of their assets and engage responsibly with host communities in line with the provisions of the Petroleum Industry Act (PIA).
The Commission Chief Executive, Mrs Oritsemeyiwa Eyesan, made the call in Abuja on Friday, during the licence signing ceremony for the second batch of winners of the 2022/2023 Mini Bid Round and the 2024 Licensing Round.
Eyesan said licence holders must prioritise their obligations to host communities to ensure the successful development of their assets.
“As licensees, you are expected to execute your approved work programmes diligently, honour your financial commitments, and comply fully with the provisions of the PIA, applicable regulations, and the contractual documents.
“The Commission equally expects the highest standards of health, safety, environmental protection, and responsible engagement with host communities,” she said.
According to her, the licences awarded under the 2022/2023 Mini Bid Round and the Nigeria 2024 Licensing Round are expected to stimulate exploration activities, attract fresh investments, accelerate the development of Nigeria’s hydrocarbon resources, and contribute significantly to national energy security and economic growth.
She noted that these objectives align with the Federal Government’s strategic target of increasing crude oil production to two million barrels per day by 2027 and achieving a long-term production goal of three million barrels per day by 2030.
In his remarks, the Executive Commissioner, Development and Production, Engr. Enorense Amadasu, urged the awardees to adhere strictly to their approved work programmes and commitments.
Amadasu disclosed that the Commission had streamlined and accelerated permit approvals to improve the ease of doing business in the upstream sector, assuring the new licence holders of NUPRC’s support.
“The Commission is committed to providing the necessary support to enable investors succeed and deliver on their obligations,” he said.
Also speaking, the Commission Secretary and Legal Adviser, Barrister Olayemi Adeboyejo, warned the awardees to develop their assets promptly or risk forfeiting them under the Petroleum Industry Act’s “drill or drop” provisions.
She further advised the companies to establish their respective Host Community Development Trusts (HCDTs) without delay and embrace alternative dispute resolution mechanisms instead of prolonged litigation to foster harmonious relationships with operators, regulators, and host communities.
The companies presented with their licences at the ceremony were Biswal Oil and Gas Ltd, Dewayles International Ltd, First E&P Development Company Ltd, Panout Oil and Gas Ltd, R28 Holdings Ltd, and Hakilat Oil and Gas Consortium.
Others — Broron Energy Limited, Petroli Energy Marketing and Supply Limited, Sahara Deepwater Resources Limited, and Tulcan Energy E&P — had earlier received their licences on July