By Chibuike Nwabuko
ABUJA (PRECISE POST) – The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has announced plans to enforce the “Drill-or-Drop” provisions of the Petroleum Industry Act (PIA) 2021, warning non-performing oil licence holders to fulfil their statutory work commitments or risk losing their licences.
The Commission disclosed this on Friday in a circular signed by its Chief Executive, Mrs. Oritsemeyiwa Eyesan, and addressed to holders of Petroleum Prospecting Licences (PPLs) awarded under the 2020 Marginal Field Bid Round, 2022/2023 Mini Bid Round and 2024 Licensing Round.
The circular, with reference number NUPRC/1127/VOL.13/55, is part of the Commission’s efforts to drive increased oil and gas production while reminding licensees that their licences have finite terms and that approved work programmes must be executed within the timelines prescribed by law.
Under the “Drill-or-Drop” framework, licence holders are expected to demonstrate progress in the development of their allocated assets by meeting the work obligations attached to their licences.
The NUPRC, however, acknowledged that several factors could affect licensees’ ability to meet their obligations.
According to the Commission, challenges such as financing constraints, rig availability, insecurity, host-community engagement, infrastructure deficiencies, regulatory approvals and partner arrangements may impede the execution of approved work programmes.
It said it was willing, within the limits of the law, to assist affected licensees in addressing such challenges.
The Commission consequently directed affected licensees to notify it of their compliance status and any challenges affecting the implementation of their obligations.
The deadline for submission of the required information is October 31, 2026.
Specifically, the NUPRC directed licensees experiencing constraints to provide details on the level of compliance with their licence obligations, including the execution of approved work programmes.
They are also required to identify the specific constraints affecting execution, as well as outline proposed mitigation measures and revised timelines for implementing their work programmes.
Precise Post recalls that the latest move signals the Commission’s determination to ensure that oil and gas assets awarded to investors translate into actual exploration and production activities, rather than remaining undeveloped within the lifespan of the licences.
