The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has directed oil licence holders with undeveloped or inactive assets to demonstrate progress by October 31 or risk enforcement measures, including possible revocation of their licences.
The directive is part of efforts to increase Nigeria’s crude oil production by ensuring operators develop the oil and gas assets allocated to them.
In a circular dated September 14, 2026, with reference number NUPRC/1127/Vol.13/55, the Commission’s Chief Executive, Oritsemeyiwa Eyesan, directed holders of Petroleum Prospecting Licences (PPLs) awarded under the 2020 Marginal Field Bid Round, the 2022 and 2023 Mini Bid Rounds, and the 2024 Licensing Round to submit reports on their compliance status, operational challenges, mitigation measures and revised development timelines.
The reports must be submitted by October 31, while failure to meet applicable obligations could attract measures such as refusal of licence extensions, relinquishment of acreage, forfeiture of work performance security and revocation proceedings.
However, the circular does not mean that all affected operators have been declared in default or that their licences have been revoked.
Speaking at an event organised by the Harvard Business School Association of Nigeria in Lagos on Friday, October 9, Eyesan reiterated the warning to unresponsive operators.
“For those who are not responsive, you can be rest assured that I am coming after you,” she said.
Eyesan also highlighted the initial three-year exploration period for onshore PPLs under Section 77 of the Petroleum Industry Act (PIA). Sections 96 and 97 provide the legal framework for addressing defaults and licence revocation.
The commission said licence holders were expected to fulfil their approved work programmes and meet performance security requirements.
It acknowledged that operators faced several challenges, including funding constraints, limited rig availability, insecurity, infrastructure deficiencies, host community disputes, regulatory delays and disagreements among business partners.
However, it stressed that engagement with the commission would not automatically extend licence terms or suspend statutory obligations. Operators must present credible plans to address the challenges and advance development of their assets.
“The Commission’s objective is to increase production, not forfeiture,” the regulator stated, adding that its priority was to move undeveloped acreage towards production rather than simply withdraw licences.
The deadline comes as the commission seeks to attract fresh investment into the oil and gas sector through a new licensing round. On October 6, the NUPRC announced 40 oil and gas blocks across onshore, shallow-water and deepwater areas following presidential approval.
Eyesan has also identified more than 788,000 barrels per day of shut-in production across 63 operators as a priority for recovery.
In addition, offshore projects requiring estimated investments of between $30 billion and $50 billion have been identified as opportunities to progress towards final investment decisions.
