NUPRC warns oil licence holders of potential revocation

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has issued a warning to holders of non-performing petroleum prospecting licences, stating that it will enforce the ‘drill-or-drop’ provisions of the Petroleum Industry Act (PIA) 2021.

The directive targets acreages awarded under the 2020 Marginal Field Bid Round, the 2022/2023 Mini Bid Round, and the 2024 Licensing Round. Under the PIA, petroleum acreage is granted for defined exploration periods with specific work commitments. If licensees fail to meet these obligations, the NUPRC may refuse licence extensions, mandate the relinquishment of acreages, call in work performance securities, or initiate formal revocation proceedings.

Commission Chief Executive Oritsemeyiwa Eyesan directed affected operators to disclose their compliance status, explain operational delays, and submit revised implementation plans by October 31, 2026. This enforcement is part of a broader federal strategy to increase Nigeria’s crude oil and gas production by ensuring that licensed areas are actively developed rather than held without exploration or production activity.