The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has given holders of 22 petroleum prospecting licences (PPLs) 18 months to commence oil production, warning that inactive oil blocks will be reclaimed from operators who fail to meet their obligations.
The commission also expects the newly licensed companies to contribute an additional 250,000 barrels per day to Nigeria’s crude oil output within five years as part of efforts to increase national production to three million barrels per day by 2030.
The NUPRC Chief Executive, Oritsemeyiwa Eyesan, announced the targets on Tuesday in Lagos during an onboarding workshop for the licence holders.
Eyesan said the immediate priority was to ensure that the companies begin operations and fulfil the minimum work programmes they committed to during the bidding process.
The 22 licences were awarded during the 2022, 2023 and 2024 licensing rounds.
According to her, the commission expects more than half of the awardees to achieve first oil within two years, while some may require up to three years. The companies are also expected to drill their second wells within three to four years.
However, she stressed that the commission’s target remained to have production commence within 18 months.
Eyesan said previous licensing rounds and marginal field awards had shown that some companies struggled to develop their assets after securing licences.
She explained that some operators assembled technical teams to strengthen their bids but disbanded them after winning, leaving them without the capacity to develop their oilfields.
She noted that meeting financial obligations associated with a licence did not automatically demonstrate an operator’s ability to manage oil production, adding that companies must also prove they have the necessary technical and commercial capabilities.
The NUPRC chief warned that licences would be withdrawn from operators who fail to carry out required activities within the stipulated periods.
She said the commission had directed the recovery of oil blocks that remain inactive for more than three years onshore and five years offshore.
Eyesan also cautioned that companies unable to secure financing or technical partners should not expect automatic extensions to their deadlines.
“An extension is not automatic,” she said, emphasising the need for operators to fulfil their commitments and contribute to the country’s production targets.
She added that the commission would support investors through clearer guidelines, more predictable regulatory processes and faster approvals, while addressing bottlenecks that could delay investments.
NUPRC Sets ₦10m Penalty For Late Work Programmes
Meanwhile, the commission has reinforced compliance with deadlines for submitting annual work programmes, with the submission window for 2027 opening on October 15 and closing on November 16, 2026.
The NUPRC’s Senior Executive for Programme and Project Management, Dr Cyril Efre, said operators who fail to meet the deadline would face a ₦10 million penalty beginning November 17, alongside an additional ₦1 million for every day the default continues.
Efre explained that the deadlines were provided for under the Nigerian Upstream Petroleum Commercial Regulations and were established following consultations with industry stakeholders.
He said timely submissions would allow the commission to review proposed activities and issue the necessary approvals before the new operating year begins on January 1.
Operators may also apply through the designated portal to modify approved work programmes, including proposals to drill additional wells, subject to regulatory approval.
For emergency operations, companies are required to notify the commission within 48 hours.
Efre added that similar penalties would apply to operators who fail to submit their half-year and full-year performance reports.
The measures form part of the commission’s efforts to improve regulatory compliance, accelerate oilfield development and increase Nigeria’s crude oil production through the effective use of licensed petroleum assets.
