NUPRC enforces new rules to boost oil block development
Nigeria’s upstream oil regulator, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), has introduced stricter rules to ensure oil companies either develop their exploration licences or give them up. Oritsemeyiwa Eyesan, Chief Executive of the NUPRC, highlighted that the new “drill or drop” policy aims to end the long-standing practice of companies holding on to undeveloped oil blocks. The commission has also implemented measures to improve transparency and attract more investors. The ongoing oil licensing round has seen strong interest despite tighter bidding conditions.
TLDR
- Oritsemeyiwa Eyesan stated that the “drill or drop” rule under Section 94 of the Petroleum Industry Act now compels companies to either develop oil blocks or relinquish them.
- The 2025 oil licensing round was formally launched in December 2025 following approval by President Bola Tinubu.
- There are 50 oil blocks on offer, with companies limited to bidding for a maximum of two blocks each.
- The pre-qualification submission window closed on February 27, 2026, and the process is expected to run from November 2025 to July 2026.
- An independent audit firm has reviewed the digital bidding system to ensure transparency and boost investor confidence.
