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, explain any challenges delaying operations and submit revised plans for meeting their obligations.
The warning was contained in a circular signed by the NUPRC Chief Executive, Oritsemeyiwa Eyesan, on September 14, 2026.
It affects operators from the 2020 Marginal Field Bid Round, 2022/2023 Mini Bid Round and 2024 Licensing Round whose acreages are not meeting their approved work commitments.
At least 62 successful awardees have been identified across the three licensing exercises. However, the October 31 deadline applies only to operators whose licences are not meeting the required work obligations.
The commission said the latest move was aimed at increasing oil and gas production by ensuring that licensed acreages were actively explored and developed.
It stressed that the Petroleum Industry Act was built around the principle that “acreage is held to be worked, and acreage that is not worked within its term returns to the Federal Government.”
The NUPRC said Sections 77, 78 and 88 of the Act, together with the default and revocation provisions under Sections 96 and 97, support the enforcement process.
Licence holders face enforcement
The regulator said possible sanctions could include refusing licence extensions, requiring operators to relinquish acreages, calling in work performance securities and beginning revocation proceedings.
It explained that petroleum licences come with specific obligations covering exploration periods, work programmes and performance securities.
“A petroleum prospecting licence is granted under section 77 of the Act for a defined initial exploration period, with an optional extension determined by the terrain of the acreage and conditional upon discharge of the work commitment applicable to the initial period,” the circular stated.
“The grant carries with it the obligations contained in the instruments constituting the licence, the General Licence Conditions, the Concession Contract, the Minimum Work Programme and the Work Performance Security, which are to be read as one.”
However, the commission said its immediate aim was to increase production rather than revoke licences.
“The Commission’s objective is to increase production, not forfeiture,” it stated.
The NUPRC acknowledged that some operators could be facing challenges such as limited financing, rig availability, insecurity, host community issues, infrastructure problems, regulatory approvals and disputes among partners.
It therefore asked affected licence holders to provide details of the challenges and proposed solutions by October 31.
“Licensees experiencing such constraints are encouraged to notify the Commission not later than 31 October 2026, stating: a. the level of compliance with its licence obligations including the execution of its approved work programme; b. the specific constraints affecting execution; and c. the proposed mitigation measures and revised implementation timeline,” the circular stated.
The regulator, however, warned that engagement with it would not automatically extend licence terms or excuse contractual obligations.
It said it would also not interfere with agreed dispute-resolution processes or the jurisdiction of the courts.
The commission further warned that disputes between business partners would not protect operators from enforcement.
“Internal disagreement will not excuse failure to meet licence obligations,” it stated.
Licences from three bid rounds affected
The licences under scrutiny were awarded through three licensing exercises designed to attract investment and boost exploration.
Under the 2020 Marginal Field Bid Round, the NUPRC issued 50 Petroleum Prospecting Licences to successful awardees.
The commission projected that the fields could generate about 58,000 barrels of oil per day and 87 million standard cubic feet of gas per day.
The 2022 Mini Bid Round, conducted under the Petroleum Industry Act, initially focused on seven deep offshore Petroleum Prospecting Licences.
The process later produced the 2022/2023 Mini Bid Round awards.
In July 2026, the NUPRC said 12 successful awardees received 19 Petroleum Prospecting Licences from the 2022/2023 Mini Bid Round and the 2024 Licensing Round.
The awards covered deep offshore, shallow-water and continental-shelf acreages.
The 2024 Licensing Round was launched to further deepen exploration and attract investment in Nigeria’s upstream petroleum sector.
The latest directive puts operators on notice that securing an oil and gas acreage comes with continuing work obligations.
The NUPRC said all affected licence holders must submit the required information by October 31, while enquiries should be directed to its Executive Commissioner, Exploration and Acreage Management, Bashari Indabawa.