Nigeria Gives Non-Performing Oil Licence Holders October 31 Deadline

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has given holders of non-performing oil licences until October 31, 2026, to demonstrate compliance with their statutory work commitments or face enforcement actions.

The directive affects licensees holding Petroleum Prospecting Licences (PPLs) awarded under the 2020 Marginal Field Bid Round, 2022/2023 Mini Bid Round and 2024 Licensing Round.

NUPRC's Chief Executive, Mrs Oritsemeyiwa Eyesan, explained that the move is in line with the 'Drill-or-Drop' provisions of the Petroleum Industry Act (PIA) 2021, which aims to increase crude oil and gas production.

The Commission reminded licensees that their licences have finite terms and must execute approved work programmes within prescribed timelines. NUPRC warned that enforcement actions may include refusing extensions, requiring relinquishment, calling in work performance security, or commencing revocation proceedings.