NUPRC threatens to revoke non-performing oil licences, sets Oct 31 deadline

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.”

It added, “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, the Commission stressed that the enforcement drive was intended to unlock production rather than simply dispossess operators of their acreages.

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.