NUPRC sets deadline for oil licence holders to declare compliance status

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) on Friday, September 18, set an October 31 deadline for oil licence holders to declare their compliance status, disclose operational challenges and submit revised timelines for meeting their work obligations.

The directive, contained in a circular signed by NUPRC chief executive, Oritsemeyiwa Eyesan, applies to holders of Petroleum Prospecting Licences (PPLs) awarded under the 2020 marginal field bid round, 2022/2023 mini bid round and 2024 licensing round.

The commission said the directive is aimed at increasing oil and gas production by ensuring that licensed acreages are developed within their approved timelines.

It reminded operators that their licences carry specific work commitments that must be fulfilled within the periods prescribed by law.

NUPRC said it would enforce the “drill-or-drop” provisions of the Petroleum Industry Act (PIA) 2021 against licence holders that fail to meet their obligations.

The commission listed possible enforcement measures, including refusing licence extensions, requiring relinquishment of acreages, calling in work performance securities and commencing revocation proceedings.

NUPRC, however, clarified that the circular is a general advisory and does not amount to a notice of default.

It said operators may face challenges such as financing difficulties, limited rig availability, insecurity, host-community issues, infrastructure gaps, regulatory approvals and partner arrangements.

Licence holders affected by such constraints were directed to provide details of their compliance status, the specific challenges they face, proposed mitigation measures and revised implementation timelines.

The commission said it could assist with resolving legitimate challenges where such intervention falls within its statutory powers.

It, however, stressed that engagement with NUPRC would not suspend the terms of a licence or relieve operators of their statutory and contractual obligations.

The regulator also said it could not override dispute-resolution mechanisms or the jurisdiction of the courts.

NUPRC urged the affected licence holders to submit the required information by October 31 for regulatory consideration and further action where necessary.