Oritsegbubemi Omatseyin
Lagos — The Nigerian Upstream Petroleum Regulatory Commission, NUPRC, is set to enforce the “Drill-or-Drop” provisions of the Petroleum Industry Act (PIA) 2021.
To this end, the Commission is urging holders of non-performing licenses from the 2020 Marginal Field Bid Round, 2022/2023 Mini Bid Round and 2024 Licensing Round to meet their statutory work commitments or risk losing their licences.
The notice was contained in a circular signed by the Commission Chief Executive, Mrs. Oritsemeyiwa Eyesan, and addressed to holders of PPLs awarded under the 2020 Marginal Field Bid Round, 2022/2023 Mini Bid Round and 2024 Licensing Round.
The circular with reference number NUPRC/1127/VOL.13/55 was issued in furtherance of the national drive to increase production” and to remind licensees of the finite term of their licences and their obligations to execute approved work programmes within the timelines prescribed by law.
The NUPRC also 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 licenses in resolving such challenges.
Affected licensees have until October 31, 2026 to notify the Commission of their compliance status, constraints, proposed mitigation measures and revised implementation timelines.
Licensees experiencing such constraints are encouraged to notify the Commission not later than 31 October 2026, stating: the level of compliance with its licence obligations including the execution of its approved work programme; the specific constraints affecting execution; and the proposed mitigation measures and revised implementation timeline,” according to the circular.
