The Chief Executive, Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Oritsemeyiwa Eyesan, says the commission will enforce the “Drill-or-Drop” provisions of the Petroleum Industry Act (PIA) 2021.
Eyesan made the disclosure in a circular issued on Friday to holders of specified oil licences.
She urged holders of licences awarded under the 2020 Marginal Field Bid Round, 2022/2023 Mini Bid Round and 2024 Licensing Round to meet statutory commitments.
She warned that failure to fulfil the obligations could result in non-extension of licences, relinquishment and enforcement of work performance securities.
The chief executive also warned that revocation proceedings could begin against licensees that failed to meet their obligations.
The circular, with reference number NUPRC/1127/VOL.13/55, said the measure was aimed at boosting crude oil production and reinforcing licence terms.
Eyesan noted that the PIA was founded on the principle that oil acreage was awarded to be worked.
“Non-performing acreage will return to the Federal Government,” she said, adding that the principle was backed by Sections 77, 78 and 88 of the PIA.
Eyesan added that the default and revocation provisions were contained in Sections 96 and 97 of the Act.
“Continued possession of a licence depends on the licensee meeting the obligations attached to it within the stipulated period.
“It is performance of those obligations within the term that entitles a licensee to continue to hold the licence,” she said.
Eyesan, however, said NUPRC’s objective was to increase production rather than revoke licences.
She said the commission was willing to assist licensees in addressing challenges, subject to the limits of the law.
She identified financing, rig availability, security, host-community engagement and infrastructure as factors that could hinder performance.
Others included regulatory approvals and partner arrangements.
Eyesan directed affected licensees to notify the commission by Oct. 31 of their compliance status and constraints.
They must also provide proposed mitigation measures and revised implementation timelines, where necessary.
The chief executive said licensees must state their compliance level, including execution of approved work programmes.
They must also identify specific constraints affecting implementation and outline proposed measures to address them.
Eyesan cautioned that NUPRC would neither exceed its statutory mandate nor allow engagements to suspend licence terms.
She said such engagements could not be used to excuse performance of statutory obligations.
Eyesan further warned that disputes among partners would not shield licensees from enforcement.
She stressed that internal disagreements would not excue failure to meet licence obligations.
Eyesan urged all affected licensees to submit the required information within the stipulated deadline.
