NUPRC Sets Oct 31 Deadline to Revoke Idle Nigerian Oil Block Licences
NUPRC has set an October 31, 2026 deadline for holders of idle oil block licences to commence drilling or risk revocation under the Drill-or-Drop provision of the Petroleum Industry Act 2021. In a statement on Friday, September 18, 2026, signed by CEO Mrs Oritsemeyiwa Eyesan, the commission said it would withdraw licences from the 2020 Marginal Field Bid Round, the 2022/2023 Mini Bid Round and the 2024 Licensing Round if statutory work commitments are not met.
The move targets non-performing acreages to ensure licensed areas are actively worked and petroleum operations are conducted diligently. NUPRC emphasized that the Drill-or-Drop policy is designed to prevent warehousing of oil assets and to accelerate development of marginal fields, which are considered vital for boosting national reserves. Licensees who fail to execute their approved work programmes could lose their rights, potentially affecting future oil output and investment flows in Nigeria's upstream sector. NUPRC urged all affected parties to fulfil their obligations immediately to avoid losing valuable assets.
Will oil companies accelerate their work programmes to beat the Oct 31 cutoff, or will many relinquish their blocks, opening the door for new bidders - and how will this enforcement shape Nigeria's crude production outlook over the next year?