The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has put holders of non-performing oil licences on notice that their acreages could be revoked unless they satisfy approved work commitments, as the regulator begins enforcing the "Drill-or-Drop" provisions of the Petroleum Industry Act 2021.
Affected operators have until October 31, 2026, to disclose their compliance status, identify obstacles delaying operations and submit revised plans for fulfilling their obligations.
The directive, contained in a circular signed by NUPRC Chief Executive Oritsemeyiwa Eyesan on September 14, 2026, with reference number NUPRC/1127/Vol.13/55, covers licensees from the 2020 Marginal Field Bid Round, the 2022/2023 Mini Bid Round and the 2024 Licensing Round. At least 62 successful awardees have been identified across the three exercises, although the deadline applies specifically to holders whose acreages are not meeting approved work commitments.
The commission cited Sections 77, 78 and 88 of the PIA, along with the default and revocation provisions in Sections 96 and 97, as the legal basis for the enforcement drive. It warned that enforcement could include refusing licence extensions, requiring operators to relinquish acreages, calling in work performance securities and initiating revocation proceedings.
According to the circular, a petroleum prospecting licence is granted for a defined initial exploration period, with any optional extension dependent on the acreage's terrain and fulfilment of applicable work commitments. Licence obligations include the terms contained in the licence instruments, General Licence Conditions, Concession Contract, Minimum Work Programme and Work Performance Security.
The regulator stressed that its immediate objective is to bring dormant or underperforming assets into production rather than automatically revoke licences. "The Commission's objective is to increase production, not forfeiture," it stated.
The NUPRC acknowledged that some licensees may face financing difficulties, rig unavailability, insecurity, host community engagement issues, infrastructure gaps, regulatory approvals and disputes among partners. It directed affected operators to submit details of compliance with licence obligations, constraints affecting progress, proposed mitigation measures and revised implementation timelines by October 31, 2026.
