Nigeria Sets October Deadline for Non-Performing Oil Licenses

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has issued a deadline of October 31, 2026, for oil license holders to demonstrate compliance with their statutory work commitments or risk the revocation of their acreages. Invoking the Drill-or-Drop provisions of the Petroleum Industry Act 2021, the regulator is targeting operators from the 2020 Marginal Field Bid Round, the 2022/2023 Mini Bid Round, and the 2024 Licensing Round.

Licensees must disclose their compliance status, identify specific obstacles delaying operations, and propose mitigation measures by the deadline. Potential penalties for non-performance include the refusal of license extensions, the required relinquishment of acreages, the calling in of work performance securities, or the commencement of formal revocation proceedings.

Chief Executive Oritsemeyiwa Eyesan signed the circular warning that while the commission may assist firms facing challenges with financing, security, infrastructure, or rig availability, internal partner disputes will not excuse a failure to meet obligations. The NUPRC stated that its primary objective is to increase national oil and gas production by ensuring licensed assets are actively developed rather than held dormant.