The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has warned holders of underperforming oil licences that they risk losing their acreages if they fail to meet approved work commitments, giving affected operators until October 31, 2026, to explain delays and submit revised plans.
The enforcement action targets operators from the 2020 Marginal Field Bid Round, the 2022/2023 Mini Bid Round and the 2024 Licensing Round whose acreages are not meeting their approved work programmes.
The directive was contained in a September 14 circular signed by NUPRC Chief Executive, Oritsemeyiwa Eyesan, with reference number NUPRC/1127/Vol.13/55.
The commission said the move is intended to implement the “Drill-or-Drop” principle under the Petroleum Industry Act 2021 and ensure that petroleum acreages awarded to investors are actively explored and developed.
Under the policy, acreage is expected to be worked during the period for which it is granted. Failure to fulfil the associated obligations can trigger regulatory action, including refusal of licence extensions, relinquishment of acreage, calling in of work performance securities and revocation proceedings.
The NUPRC, however, said its immediate objective is to increase oil and gas production rather than simply strip operators of their licences.
“The Commission’s objective is to increase production, not forfeiture,” it stated warning that engaging with the regulator would not suspend licence terms or relieve operators of their contractual obligations.
The regulator acknowledged that some operators may be unable to meet their commitments because of financing difficulties, rig availability, insecurity, host-community issues, infrastructure constraints, regulatory approvals or disputes between partners.
It therefore directed affected licensees to disclose their compliance status, identify the specific obstacles affecting their operations and submit proposed mitigation measures and revised implementation timelines by October 31.
Licences Issued During Multiple Bid Rounds
The 2020 Marginal Field Bid Round produced 50 Petroleum Prospecting Licences, with the NUPRC previously projecting that the awarded fields could eventually contribute about 58,000 barrels of crude oil per day and 87 million standard cubic feet of gas per day.
The 2022/2023 Mini Bid Round was conducted under the framework of the PIA and initially focused on seven deep-offshore Petroleum Prospecting Licences. The exercise was designed to attract new investors into Nigeria’s prospective petroleum acreage.
In July 2026, the NUPRC said 12 successful awardees had received 19 PPLs from the 2022/2023 Mini Bid Round and the 2024 Licensing Round. The acreages cover deep offshore, shallow-water and continental-shelf areas.
The 2024 Licensing Round subsequently offered additional deep offshore, shallow-water and onshore opportunities as Nigeria sought to stimulate exploration and attract investment into its upstream sector.
For operators that can demonstrate genuine constraints, the NUPRC has asked for a clear account of their compliance position and a credible recovery plan. But where licence obligations remain unmet, the commission has signaled that regulatory enforcement will follow.
