The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has given licensees until October 31 to notify the commission of their compliance status, constraints, proposed mitigation measures, and revised implementation timelines.
NUPRC gave the directive in a circular, signed by
Oritsemeyiwa Eyesan, NUPRC’s chief executive officer (CEO), 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.
According to NUPRC, the circular, with reference number
NUPRC/1127/VOL.13/55, was issued as part of efforts to increase production and
remind licensees of the finite terms of their licences and obligation to
execute approved work programmes within the timelines prescribed by law.
“Licensees experiencing such constraints are encouraged to
notify the Commission not later than 31 October 2026, stating: the level of
compliance with their licence obligations, including the execution of the
approved work programme; the specific constraints affecting execution; and the
proposed mitigation measures and revised implementation timeline,” the circular
reads.
The commission urged holders of non-performing licenses from
the bid rounds to fulfil their work commitments or risk losing their licences,
saying it would enforce the “drill-or-drop” provisions of the Petroleum
Industry Act (PIA) 2021.
“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 commission said.
“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. It is performance of those obligations
within the term that entitles a licensee to continue to hold the licence.”
NUPRC said it would enforce the provisions of the PIA on all
non-performing acreage by refusing extensions, requiring relinquishment,
calling in work performance securities, and commencing revocation proceedings.
The commission, however, clarified that the communication is
a general advisory and does not constitute a notice of default under the PIA or
its subsidiary instruments.
Furthermore, the NUPRC acknowledged that financing, rig
availability, security, host-community engagement, infrastructure, regulatory
approvals, and partner arrangements may impede performance and is therefore
willing within the limits of the law, to assist licensees in resolving such
challenges.
The commission said it would not assume jurisdiction beyond
its statutory mandate, override any agreed dispute-resolution mechanism or the
jurisdiction of the courts, or allow engagement with it to suspend a licence
term or excuse the performance of any obligation.
NUPRC said, however, that it could intervene or facilitate
discussions where such action falls within its mandate and assist parties in
resolving issues that could affect the timely fulfilment of their obligations.
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