The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) says it will enforce the “Drill-or-Drop” provisions of the Petroleum Industry Act (PIA) 2021 against oil licence holders who fail to meet their statutory obligations.
NUPRC Chief Executive, Mrs Oritsemeyiwa Eyesan, disclosed this, on Friday September 18, in a circular to holders of licences awarded under the 2020 Marginal Field Bid Round, 2022/2023 Mini Bid Round and 2024 Licensing Round. She warned that failure to meet work commitments could lead to non-extension, relinquishment, enforcement of work performance securities and possible revocation proceedings.
Eyesan said the policy was aimed at increasing crude oil production and ensuring that awarded oil acreage was actively developed. She noted that Sections 77, 78 and 88 of the PIA support the principle, while Sections 96 and 97 provide for default and revocation measures. “Non-performing acreage will return to the Federal Government,” she said.
The NUPRC chief, however, said the commission’s priority was to increase production rather than revoke licences. She identified financing, rig availability, security, host-community relations, infrastructure, regulatory approvals and partner arrangements among factors that could affect licence performance, adding that the commission was willing to assist within the limits of the law.
Affected licensees have been directed to submit their compliance status to the commission by Oct. 31, including details of approved work programmes, constraints, proposed mitigation measures and revised implementation timelines where necessary. Eyesan stressed that partner disputes or ongoing engagements with NUPRC would not suspend statutory obligations.
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