NUPRC 2026 Licensing Round: 40 Blocks Offered Under Strict 'Drill-or-Drop' Mandate

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has officially inaugurated its 2026 petroleum licensing round, offering 40 exploration and production acreages across onshore terrain, shallow-water blocks, and deepwater frontiers.

Concurrently, the Commission issued statutory compliance circulars to holders of non-performing marginal fields, notifying them of the strict enforcement of the 'Drill-or-Drop' mandate codified in the Petroleum Industry Act 2021.

What this means for operators

1. Elimination of speculative acreage hoarding: Licensees holding Petroleum Prospecting Licences (PPLs) are subject to a mandatory 90-day review period to demonstrate tangible work program execution or file farm-in agreements. Non-compliant acreages face immediate statutory revocation.
2. Stringent beneficial ownership disclosure: Bidding consortia must comply with NEITI governance rules, disclosing all beneficial owners and providing an irrevocable bank guarantee covering 100% of minimum exploration expenditure commitments.
3. Domestic gas royalty relief: Non-associated gas discoveries committed to domestic power generation (Gas-to-Power) qualify for a reduced 2.5% royalty rate across all terrains.

Statutory Timelines

• Pre-qualification closing: 60 days following formal gazetting of bid guidelines.
• Drill-or-Drop compliance audits: Technical committee review concluding within 30 business days.
• Commercial bid submission: Concluding Q4 2026.