The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has told holders of Petroleum Prospecting Licences (PPLs) that acreage not worked within its term returns to the Federal Government, and that it intends to enforce the "Drill-or-Drop" provisions of the Petroleum Industry Act (PIA) 2021 against non-performing acreage. Licensees facing constraints have been asked to report them by October 31, 2026.
The notice is contained in a circular dated September 14, 2026, with reference number NUPRC/1127/Vol.13/55, signed by the Commission Chief Executive, Oritsemeyiwa Eyesan. It is addressed to all PPL holders under the 2020 Marginal Field Bid Round, the 2022/2023 Mini Bid Round and the 2024 Licensing Round.
The commission said the PIA proceeds on the principle that "acreage is held to be worked." It listed refusal of licence extensions, relinquishment of acreages, calling in of work performance securities and commencement of revocation proceedings as measures it may apply, citing Sections 77, 78 and 88 of the PIA and the default and revocation provisions in Sections 96 and 97. It described the circular as a general advisory that does not constitute a notice of default under the PIA or its subsidiary instruments.
Licensees experiencing constraints are encouraged to state their level of compliance with licence obligations, including execution of the approved work programme, the specific constraints affecting execution, and proposed mitigation measures with a revised implementation timeline.
NUPRC said its objective is to increase production, not forfeiture. It listed financing, rig availability, security, host community engagement, infrastructure, regulatory approvals and partner arrangements as challenges that may affect licensees, and said it is willing, within the limits of the law, to help resolve them. It added that engagement with the commission will not suspend the term of a licence, displace the courts or agreed dispute-resolution mechanisms, or excuse the performance of any obligation.
On partner disputes, the commission advised licensees to ensure partnership and financing agreements address participating interests, operatorship, deadlock, cash calls, default, assignment, change of control and binding dispute resolution that allows operations to continue. It said disagreement between partners will not excuse failure to meet licence obligations.
The 2020 Marginal Field Bid Round produced 50 PPLs, with projected output of about 58,000 barrels of oil per day and 87 million standard cubic feet of gas per day. In July 2026, NUPRC said 12 awardees received 19 PPLs from the 2022/2023 Mini Bid Round and the 2024 Licensing Round, covering deep offshore, shallow-water and continental-shelf acreages.