NUPRC Enforces Drill-or-Drop Policy with October Deadline

The Nigerian Upstream Petroleum Regulatory Commission has issued a directive enforcing the "Drill-or-Drop" policy, giving oil and gas licensees until October 31, 2026, to report their compliance status or risk losing their licences. The circular, signed by NUPRC Chief Executive Oritsemeyiwa Eyesan, targets holders of petroleum prospecting licences awarded under the 2020 Marginal Field Bid Round, the 2022-2023 Mini Bid Round, and the 2024 Licensing Round. The regulator stated that the enforcement aims to ensure licensed acreages are actively developed, in line with the Petroleum Industry Act 2021. Licensees must submit details of their compliance with approved work programmes, specific constraints, proposed mitigation measures, and revised timelines by the deadline. The NUPRC warned that failure to comply could lead to enforcement measures, including refusal of licence extensions, compulsory relinquishment of acreages, enforcement of work performance securities, and commencement of revocation proceedings. However, the commission clarified that the circular is a general advisory and does not constitute a formal notice of default under the PIA.