NUPRC Moves To Revoke Non-Performing Oil Licences

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has moved to enforce the “Drill-or-Drop” provisions of the Petroleum Industry Act (PIA) 2021, warning holders of non-performing petroleum licences that they risk losing their assets if they fail to meet statutory work commitments.

The affected licences include those issued under the 2020 Marginal Field Bid Round, the 2022/2023 Mini Bid Round and the 2024 Licensing Round.

The warning was contained in a circular signed by the Commission Chief Executive, Oritsemeyiwa Eyesan, and addressed to holders of Petroleum Prospecting Licences (PPLs).

According to the Commission, the enforcement is part of the Federal Government’s drive to increase oil and gas production and ensure that licensed acreages are actively developed in line with approved work programmes and statutory timelines.

NUPRC stressed that the PIA is based on the principle that petroleum acreage is awarded to be worked, adding that any acreage not developed within the prescribed period may revert to the Federal Government in accordance with the law.

The regulator said it would enforce the provisions against all non-performing acreages, with possible measures including refusal of licence extensions, compulsory relinquishment, calling in work performance security and commencement of revocation proceedings.

Affected licensees have been given until October 31, 2026, to notify the Commission of their compliance status, identify constraints affecting their operations, provide proposed mitigation measures and submit revised implementation timelines.

The Commission said the move is intended to ensure that petroleum assets are actively developed and that licence holders meet the obligations attached to the acreages awarded to them.