WHY THE NUPRC’ S DRILL-OR-DROP CIRCULAR MATTERS FOR LICENCE RETENTION, REGULATORY ENGAGEMENT AND TRANSACTIONS INVOLVI NG AFFECTED ACREAGE
The Circular
On 14 September 2026, the NUPRC issued an enforcement Circular that every PPL holder must read carefully.
| CIRCULAR REFERENCE | NUPRC/1127/Vol. 13/55, dated 14 September 2026 |
| FULL TITLE | "Notice of Enforcement of the Drill-or-Drop Provisions of the Petroleum Industry Act 2021" |
| ADDRESSED TO | All holders of PPLs awarded under the 2020 Marginal Field Bid Round, the 2022/2023 Mini Bid Round, and the 2024 Licensing Round |
| APPL COMPRISES | The licence · General Licence Conditions · Concession Contract · Minimum Work Programme · Work Performance Security |
Statutory Basis: Sections 77, 78, and 88 of the PIA 2021; default and revocation provisions of sections 96 and 97
KEY DETAILS
|
REFERENCE NUMBER NUPRC/1127/Vol. 13/55 |
DATE ISSUED 14 September 2026 |
INSTRUMENT Circular (general advisory) |
| THREE LICENSING ROUNDS AFFECTED | ||
| 2020 | 2022/2023 | 2024 |
THE LEGAL EFFECT
Advisory, Not Default: The Legal Effect of the Circular
The Circular is a general advisory - not a notice of default - but enforcement consequences are live and real.
"The Commission's objective is 'to increase production, not forfeiture.'"
NUPRC CIRCULAR - PARAGRAPH 7
PARAGRAPH 6 - EXPRESS DISCLAIMER
Paragraph 6 expressly states: the Circular is a general advisory without prejudice and does not constitute a notice of default under the PIA.
ENFORCEMENT CONSEQUENCES ON NOTICE (PARAGRAPH 5)
| 01 Refusing extension of a PPL | 02 Requiring relinquishment of acreage |
| 03 Calling in the Work Performance Security | 04 Commencing revocation proceedings |
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