Olaide Shaw, Director of Acreage Management at NUPRC, explained that the recovered fields have been reintroduced into licensing rounds for investors prepared to undertake development. The 'drill-or-drop' policy mandates that companies holding oil and gas acreage must progress with their committed work programs or surrender the assets to more capable investors. This initiative seeks to ensure active development rather than mere possession of licenses.
Shaw described acreage warehousing as a practice where companies hold onto blocks without allocating resources for their development, often engaging in superficial activities. In contrast, working acreage involves tangible progress such as seismic acquisition, drilling preparations, and procurement, demonstrating a commitment to development. The NUPRC has also transitioned to a fully digital operational system, enhancing efficiency in application approvals and overall commission work.
In parallel, Renaissance Energy has announced ambitious plans to significantly increase its crude oil output and domestic gas supply. The company aims to double its crude production to 500,000 barrels per day and boost its domestic gas contribution to 1 billion cubic feet per day, aligning with a broader vision for Nigeria's industrialization. This expansion is contingent on collaboration with regulatory bodies like NUPRC and NNPC.
Ademola Adeyemi-Bero, Chief Executive of First E&P and OPEC Governor, highlighted the potential for substantial investment in Nigeria's upstream sector, estimated at $100 billion. He emphasized the importance of ensuring this investment benefits Nigeria through local content development, job creation, and support for domestic service companies. Adeyemi-Bero also assured that Nigeria would secure its required OPEC quota for the upcoming year.