The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has moved to enforce the “Drill-or-Drop” provisions of the Petroleum Industry Act (PIA) 2021, warned holders of non-performing petroleum licences to meet their statutory work commitments or risk losing their licences.
The Commission, in a circular signed by its Chief Executive, Mrs. Oritsemeyiwa Eyesan, and addressed to holders of Petroleum Prospecting Licences (PPLs) awarded under the 2020 Marginal Field Bid Round, 2022/2023 Mini Bid Round and 2024 Licensing Round, said the move was aimed at increasing Nigeria’s oil and gas production.
The circular, referenced NUPRC/1127/VOL.13/55, reminded affected licensees that their licences have finite terms and that they are legally required to execute approved work programmes within the timelines prescribed by law.
According to the Commission, the enforcement is part of efforts to ensure that awarded petroleum assets are actively developed rather than left dormant, in line with the objectives of the PIA.
The NUPRC, however, acknowledged that several factors could impede the ability of licensees to fulfil their obligations. These include financing challenges, rig availability, insecurity, host-community engagement, infrastructure limitations, regulatory approvals and partner arrangements.
It said it remained willing, within the limits of the law, to assist affected licensees in resolving legitimate challenges that may be hindering the execution of their approved work programmes.
The Commission has therefore directed licensees experiencing such constraints to notify it of their compliance status and provide details of the challenges affecting their operations.
The affected companies are required to submit the information to the NUPRC not later than October 31, 2026, including their level of compliance with licence obligations, particularly the execution of approved work programmes.
They are also expected to state the specific constraints affecting implementation, outline proposed mitigation measures and provide revised timelines for completing their outstanding commitments.
The Commission warned that failure to demonstrate compliance or credible plans to address identified challenges could trigger enforcement of the “Drill-or-Drop” provisions, potentially leading to the revocation of non-performing licences.
