Idle Oil Blocks Risk Revocation Under Petroleum Industry Act – NUPRC
By NaijaEnquirer Staff
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has warned that oil block licenses may be revoked if holders fail to meet their development obligations, in line with the provisions of the Petroleum Industry Act (PIA).
Engr. Gbenga Komolafe, Chief Executive of NUPRC, said undeveloped acreages will not be allowed to lie dormant while the country pushes to maximize the value of its hydrocarbon resources.
“If you have been awarded an oil block and you refuse to develop it in accordance with the terms, it will be revoked,” Komolafe declared.
He explained that each oil block award comes with specific conditions and timelines for exploration and development, which investors are obligated to fulfil. The PIA makes it clear that unexplored acreages are expected to be relinquished in line with regulatory provisions.
The warning comes as the Federal Government seeks to boost crude oil output, attract fresh capital inflows, and shore up declining revenues. Enforcing relinquishment provisions, according to Komolafe, will open dormant assets to more serious investors, stimulate competition, and accelerate production growth.
Reaffirming the Commission’s stance, the NUPRC boss stressed that compliance with the law is non-negotiable. He noted that the Commission will continue to operate strictly within the framework of the PIA, ensuring alignment with global best practices where idle oil assets are reassigned to optimize resource development.
By enforcing these provisions, Nigeria hopes to unlock new investments in its upstream sector, improve crude oil output, and strengthen fiscal buffers in the face of a challenging oil market.
