Overview
On September 14, 2026, the Nigerian Upstream Petroleum Regulatory Commission issued a circular reminding Petroleum Prospecting Licence holders that the drill-or-drop principle under the Petroleum Industry Act is not a formality.
The Commission has invited licensees facing constraints, whether financing, rig availability, host-community engagement, or internal joint venture disagreements, to notify it by October 31, 2026, setting out their level of compliance, the specific constraints, and their proposed mitigation measures and revised timelines.
This insight examines what the circular requires, the regulatory objectives behind it, the distinction between a drill-or-drop enforcement and a revocation for default, and the practical steps affected PPL holders should take now.
