BY EMMA PETER, ABUJA
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has warned holders of certain petroleum licences that failure to meet approved work commitments could lead to the revocation of their licences.
The warning affects Petroleum Prospecting Licence (PPL) holders whose licences were awarded under the 2020 Marginal Field Bid Round, 2022/2023 Mini Bid Round and 2024 Licensing Round.
In a press statement issued on September 18, 2026, by Eniola Akinkuotu, Head, Media and Corporate Communications, NUPRC, and obtained by Oxford Reporters, the Commission is set to enforce the “Drill-or-Drop” provisions of the Petroleum Industry Act (PIA) 2021 against non-performing acreages.
The Commission said the move is part of efforts to increase oil and gas production while ensuring that licence holders fulfil their statutory obligations within the approved lifespan of their licences.
The notice, contained in a circular signed by the Commission Chief Executive, Mrs. Oritsemeyiwa Eyesan, and referenced NUPRC/1127/VOL.13/55, reminded affected licensees of their responsibility to execute approved work programmes within the timelines prescribed by law.
NUPRC stressed that petroleum acreages are awarded for development and production, and that continued possession of a licence is tied to the fulfilment of the obligations attached to it.
The regulator said possible enforcement measures include refusal of licence extensions, requiring relinquishment of acreage, calling in work performance securities and commencing revocation proceedings where applicable.
According to the Commission, the enforcement is anchored on relevant provisions of the PIA, particularly Sections 77, 78 and 88, alongside the default and revocation provisions contained in Sections 96 and 97.
NUPRC, however, clarified that its primary objective is to increase production rather than simply deprive operators of their licences.
The Commission acknowledged that some licence holders may encounter challenges relating to financing, rig availability, security, host-community engagement, infrastructure, regulatory approvals and partner arrangements.
It said it remains willing, within the limits of its statutory mandate, to assist affected licensees in addressing genuine obstacles to the implementation of their approved work programmes.
NUPRC has therefore directed affected licence holders to provide details of their compliance status and the circumstances responsible for any delays.
The licensees have until October 31, 2026, to notify the Commission of the level of compliance with their licence obligations, including the execution of approved work programmes, the specific constraints affecting implementation, as well as proposed mitigation measures and revised timelines for completing outstanding commitments.
The Commission, however, cautioned that any engagement with licensees would remain within its statutory powers and would not be used to suspend the duration of a licence or excuse non-performance.
It further warned that disputes between partners would not shield operators from regulatory action, stressing that internal disagreements cannot be used as justification for failing to meet licence obligations.
All affected licence holders have consequently been urged to submit the required information before the October 31 deadline and take appropriate steps to demonstrate compliance with their statutory work commitments.
