The Nigerian Upstream Petroleum Regulatory Commission has moved to enforce the “drill-or-drop” provisions of the Petroleum Industry Act against holders of non-performing petroleum licenses.
The regulator has given affected operators until October 31, 2026 to provide information on the status of their work programs, operational constraints and revised implementation timelines.
The directive applies particularly to winners of the 2020 marginal-field bid round, the 2022/2023 mini bid round and the 2024 licensing round.
NUPRC said license were granted for finite terms and that holders were required to execute approved work obligations within the periods prescribed by law.
The Commission said Sections 77, 78 and 88 of the Petroleum Industry Act support the principle that acreage must be actively developed or returned to the Federal Government.
It also cited the default and revocation provisions in Sections 96 and 97.
Possible enforcement measures include refusal of licence extensions, compulsory relinquishment, activation of work-performance securities and revocation proceedings.
NUPRC stressed, however, that its primary objective was to increase production rather than simply withdraw licenses.
The Commission acknowledged that financing, rig availability, security conditions, host-community issues, infrastructure, regulatory approvals and partner arrangements could hinder development.
It said operators facing such constraints should formally notify the regulator and propose credible mitigation plans.
NUPRC warned that internal partner disputes would not automatically excuse failure to meet license obligations.
The regulator also said engagement with operators would not suspend statutory license terms or allow the Commission to act outside its legal mandate.
The directive is part of a broader push to increase upstream investment, development activity and crude-oil production.
