NUPRC Sets October 31, 2026 Deadline for Non-Performing Oil Licence Holders
By Aboki Forex —
The Nigerian Upstream Petroleum Regulatory Commission has warned holders of non-performing oil licences that they risk losing their acreages if they fail to meet approved work commitments. The regulator gave affected operators until October 31, 2026 to disclose their compliance status, identify obstacles delaying operations and submit revised plans for fulfilling their obligations.
The warning is contained in a circular signed by NUPRC Chief Executive Oritsemeyiwa Eyesan, dated September 14, 2026, with reference number NUPRC/1127/Vol.13/55. It covers licensees from the 2020 Marginal Field Bid Round, the 2022/2023 Mini Bid Round and the 2024 Licensing Round. At least 62 successful awardees have been identified across the three licensing exercises.
Drill-or-Drop enforcement
The commission said the drive is intended to raise Nigeria's oil and gas production by ensuring licensed acreages are actively explored and developed. It cited the Petroleum Industry Act 2021 principle that "acreage is held to be worked, and acreage that is not worked within its term returns to the Federal Government."
Legal backing comes from Sections 77, 78 and 88 of the Act, along with the default and revocation provisions in Sections 96 and 97. Enforcement could include refusing licence extensions, requiring operators to relinquish acreages, calling in work performance securities and initiating revocation proceedings.
What operators must file
A petroleum prospecting licence is granted for a defined initial exploration period, with any optional extension dependent on the acreage's terrain and fulfilment of the applicable work commitments. Obligations include the terms in the licence instruments, General Licence Conditions, Concession Contract, Minimum Work Programme and Work Performance Security, which the commission said must be read together.
Affected operators must submit details of compliance, including execution of approved work programmes, the specific constraints affecting progress, proposed mitigation measures and revised implementation timelines by October 31, 2026.
NUPRC acknowledged that some licensees face challenges involving financing, rig availability, insecurity, host community engagement, infrastructure, regulatory approvals and disputes among partners. It said it would facilitate solutions where possible but warned that engagement would not extend licence terms or excuse contractual obligations, and that partner disputes would not exempt operators. "Internal disagreement will not excuse failure to meet licence obligations," the circular stated.
The regulator stressed its aim is to bring dormant assets into production rather than revoke licences outright. "The Commission's objective is to increase production, not forfeiture," it said.
Background
Under the 2020 Marginal Field Bid Round, NUPRC issued 50 Petroleum Prospecting Licences, with projected output of about 58,000 barrels of oil per day and 87 million standard cubic feet of gas per day. The 2022 Mini Bid Round initially focused on seven deep offshore PPLs. In July 2026, the commission said 12 successful awardees had received 19 PPLs from the 2022/2023 Mini Bid Round and the 2024 Licensing Round, covering deep offshore, shallow-water and continental-shelf acreages.
The 2025 licensing round offered 50 oil and gas blocks across five sedimentary basins, with the signature bonus cut to between $3 million and $7 million, down from $10 million in 2024 and far below the roughly $200 million required some years ago. The round was launched in December 2025 with a digital bid portal.
For the naira, faster conversion of dormant acreages into producing assets would lift crude output and dollar inflows, a key support for the currency and for upstream service businesses waiting on drilling activity.