The Federal Government is set to launch a widespread revocation of inactive oil blocks next week, as the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) takes steps to reclaim assets from license holders who have failed to initiate development within specified timeframes.
The announcement was made in Lagos on Tuesday by NUPRC Chief Executive Oritsemeyiwa Eyesan during a two-day onboarding session organized for recipients of Petroleum Prospecting Licenses from the 2022/2023 and 2024 licensing rounds.
Eyesan revealed that the commission has issued an order to repossess inactive oil blocks from non-compliant licensees, warning that operators who hold onto assets without making measurable progress will no longer be allowed to retain them indefinitely.
Eyesan remained firm on the directive, asserting that the government will officially reclaim those non-performing assets by the end of the month, despite queries from some asking if she was merely making empty threats.
She explained that the commission’s directive specifically targets license holders who failed to meet statutory deadlines—three years for onshore fields and five years for offshore assets.
According to Eyesan, several successful bidders assembled technical teams merely to participate in the licensing process, only for those teams to disband once the assets were secured, leaving the companies without the expertise required to develop the blocks.
She added that these operators subsequently lost valuable time searching for funding or technical partners, eventually approaching the commission for extensions after failing to make progress.
Backstory…
Nigeria’s efforts to increase crude oil production have been shaped by years of underinvestment, oil theft, pipeline vandalism and operational challenges that have prevented the country from consistently meeting its production targets.
The government has also sought to attract investment into the upstream petroleum sector following the enactment of the Petroleum Industry Act in 2021, which introduced reforms to improve regulation, strengthen accountability and create a more competitive investment environment.
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