Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has given holders of non-performing oil licences until October 31, 2026, to disclose their level of compliance with approved work programmes and explain challenges affecting their operations.
Gatekeepers News reports that the directive was contained in a September 14 circular signed by NUPRC Chief Executive Oritsemeyiwa Eyesan. It applies to affected Petroleum Prospecting Licence holders from the 2020 Marginal Field Bid Round, the 2022/2023 Mini Bid Round and the 2024 Licensing Round.
The regulator said the move is part of efforts to enforce the “Drill-or-Drop” provisions of the Petroleum Industry Act and ensure that licensed oil and gas acreages are actively explored and developed.
Under the directive, affected companies are required to state their level of compliance, identify specific obstacles delaying their approved work programmes, propose measures to address the challenges and provide revised implementation timelines by the October 31 deadline.
The NUPRC said operators could face challenges including financing difficulties, rig availability, insecurity, host-community issues, infrastructure limitations, regulatory approvals and disputes between partners.
However, the commission warned that engaging with it would not automatically extend the duration of a licence or excuse companies from meeting their contractual obligations.
The regulator said enforcement measures could include refusing licence extensions, requiring operators to relinquish acreages, calling in work performance securities and commencing revocation proceedings where applicable.
The NUPRC, however, clarified that the immediate objective of the exercise is to increase oil and gas production rather than simply take licences away from operators.
“The Commission’s objective is to increase production, not forfeiture,” it said.
The commission also stated that disagreements among partners would not constitute an excuse for failing to meet licence obligations.
The affected licences were awarded through several licensing exercises aimed at attracting investment and increasing exploration across Nigeria’s upstream petroleum sector. The 2020 Marginal Field Bid Round produced 50 Petroleum Prospecting Licences, while awards from the 2022/2023 Mini Bid Round and 2024 Licensing Round covered deep offshore, shallow-water and continental-shelf acreages.
The latest directive places the affected operators on notice that failure to meet their work commitments could trigger further regulatory action under the Petroleum Industry Act.
