By: OrePulse

Nigeria's Upstream Petroleum Regulatory Commission (NUPRC) has told holders of oil exploration licenses to report their compliance status and submit updated work plans by October 31, 2026, warning that it could revoke acreage found not to meet approved commitments.

The commission said it is enforcing the "drill-or-drop" provisions in the Petroleum Industry Act (PIA) 2021, under which the government can take back unused exploration acreage.

The directive covers licensees awarded acreage through three separate rounds: the 2020 Marginal Field Bid Round, the 2022/2023 Mini Bid Round, and the 2024 Licensing Round. NUPRC said the compliance check could affect at least 62 awardees who won licenses across the three rounds.

The instructions were laid out in an NUPRC circular dated September 14, 2026, and signed by the commission's chief executive, Oritsemeyiwa Eyesan. The circular said operators found to be non-compliant could face a range of enforcement steps, including denial of license extensions, forced relinquishment of acreage, calls on work-performance securities, and, ultimately, revocation proceedings.

"Acreage is held to be worked," the commission said, adding that acreage left undeveloped could revert to the federal government.

Still, NUPRC said its primary objective is to push output higher, not to strip licenses from operators as a matter of course. The commission conceded that some license holders may be grappling with real hurdles, including difficulty raising finance, a shortage of drilling rigs, insecurity in parts of the country, and disagreements between partners in a license.

The commission said it was willing to work with operators to address these problems. Still, it made clear that any assistance offered would stop short of extending license terms or waiving the contractual obligations tied to each award.

The move forms part of NUPRC's broader effort to clear stalled licenses and push operators toward faster development of Nigeria's oil and gas acreage under the Petroleum Industry Act framework.