The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has moved to revoke non-performing oil licences awarded under recent bid rounds, warning operators to fulfil their statutory work obligations or risk losing their assets.
The regulator said the affected operators have until October 31 to demonstrate compliance with their approved work programmes under the “Drill-or-Drop” policy established by the Petroleum Industry Act (PIA) 2021.
The NUPRC disclosed this in a circular signed by its Chief Executive Officer, Mrs Oritsemeyiwa Eyesan.
The affected licences were awarded under the 2020 Marginal Field Bid Round, 2022/2023 Mini Bid Round and 2024 Licensing Round.
The commission said the enforcement action was part of its mandate to ensure that licensed oil and gas acreages are actively worked and petroleum operations are conducted in a diligent and businesslike manner.
It urged holders of non-performing licences to meet their statutory commitments, particularly the timely implementation of approved work programmes.
“In furtherance of the Commission’s mandate to ensure that licensed acreages are actively worked and petroleum operations are conducted in a diligent and businesslike manner, the Commission wishes to reiterate its Drill-or-Drop Policy and remind licensees of their statutory work commitments under the licence terms, including the timely execution of their approved work programme,” the NUPRC said.
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Under the policy, operators are expected to demonstrate progress in developing their licensed assets rather than retain oil and gas acreages without meaningful exploration or development activities.
The commission’s latest directive places operators whose licences have remained inactive or failed to meet approved commitments under a fresh compliance deadline.
Failure to meet the stipulated obligations could result in the revocation of the affected licences from October 31.
The move underscores the regulator’s push to ensure that awarded petroleum assets contribute to Nigeria’s upstream activities and are not left undeveloped.
