By Udeme Akpan, Energy Editor
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has threatened to revoke petroleum prospecting licences (PPLs) whose holders fail to meet their statutory work commitments, giving affected operators until October 31, 2026 to disclose challenges delaying the development of their acreages.
The warning covers holders of licences awarded under the 2020 Marginal Field Bid Round, 2022/2023 Mini Bid Round and 2024 Licensing Round.
In a circular dated September 14, 2026 and signed by the Commission Chief Executive, Mrs Oritsemeyiwa Eyesan, NUPRC said it was moving to enforce the “drill-or-drop” provisions of the Petroleum Industry Act (PIA) 2021 as part of efforts to increase oil and gas production.
The Commission warned that it would enforce the provisions against non-performing acreages, including “refusing extension, requiring relinquishment, calling in the work performance security and commencing revocation proceedings.”
NUPRC said: “Acreage is held to be worked, and acreage that is not worked within its term returns to the Federal Government.”
The regulator said the licences carry specific obligations covering approved work programmes, minimum work programmes and work performance security, adding that continued ownership of the acreages was conditional on meeting those obligations within the prescribed licence terms.
However, NUPRC stressed that the enforcement drive was intended to unlock production rather than simply dispossess operators of their acreages.
The Commission stated: “The Commission’s objective is to increase production, not forfeiture.”
It acknowledged that operators could face legitimate challenges in executing their obligations, including financing, rig availability, security, host-community engagement, infrastructure, regulatory approvals and partner arrangements.
Accordingly, it directed affected licensees facing such constraints to notify the Commission by October 31, 2026.
The submissions, according to NUPRC, must state “the level of compliance with its licence obligations including the execution of its approved work programme,” the specific constraints affecting implementation, proposed mitigation measures and revised timelines.
The Commission said it was prepared, within the limits of its statutory mandate, to help resolve issues affecting timely execution of licence obligations.
It cautioned, however, that engagement with NUPRC would not suspend the term of a licence or relieve operators of their statutory obligations.
“Internal disagreement will not excuse failure to meet licence obligations,” the Commission warned, particularly in relation to disputes among partners.
NUPRC urged licensees to ensure that partnership and financing agreements clearly address participating interests, operatorship, deadlock, cash calls, default, assignment, change of control and dispute-resolution mechanisms that allow operations to continue.
The Commission said it could facilitate discussions where such intervention falls within its mandate, but would not assume jurisdiction beyond its statutory powers or displace agreed dispute-resolution mechanisms or the jurisdiction of the courts.
It also clarified that the latest circular was “general advisory” and did not constitute a formal notice of default under the PIA or its subsidiary instruments.
Under the PIA, the Commission said, a PPL is granted for a defined initial exploration period, with any extension dependent on the terrain of the acreage and the fulfilment of applicable work commitments.
NUPRC said the enforcement of the drill-or-drop provisions was therefore aimed at ensuring that licensed oil and gas acreages are actively explored and developed rather than held without corresponding investment and operational activity.
The post NUPRC threatens to revoke non-performing oil licences, sets Oct 31 deadline appeared first on Vanguard News.