The federal government is set to revoke as many as 40 marginal oil field licences by the end of June over prolonged inactivity by their operators, in a decisive move to enforce compliance with the Petroleum Industry Act (PIA) and boost the country’s oil production.
Sources within the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) confirmed that the affected licences—awarded during the 2020 marginal field bid round—will expire on June 30, 2025, unless their holders showed substantial progress in exploration or production. Many operators, however, are said to have failed to meet key development milestones, raising the likelihood of revocation.
“The government is determined to enforce the provisions of the PIA,” a senior regulatory official said. “Marginal field licences are not meant to be held indefinitely without activity. If the fields are not being developed, they will be reassigned to more capable investors.”
The 2020 bid round was Nigeria’s first in nearly two decades and was aimed at increasing indigenous participation in the upstream sector. A total of 57 fields were awarded to 161 companies, but only a fraction of the winners have been able to mobilise resources and move into production phases. Regulatory officials said this lag undermines the goals of asset optimisation and national production targets.
“The whole idea of the marginal field programme is to give Nigerian companies a shot at building capacity and contributing to the economy,” said another source familiar with the process. “But we cannot allow these assets to remain idle when the nation needs every drop of oil it can get.”
The NUPRC has reportedly engaged the affected operators, urging them to speed up technical and financial arrangements to avoid losing their licences. However, only those with credible development plans and demonstrable progress may be considered for deadline extensions.
Industry stakeholders say the revocation threat sends a strong message that the era of speculative asset holding is over. The move is expected to open up opportunities for more serious investors while boosting transparency and efficiency in the upstream sector.
While the development could displace some local operators and communities who had hoped to benefit economically from the licences, government officials argue that non-performing assets serve no one and undermine national energy goals.
As Nigeria pushes to raise its crude output—currently well below its OPEC quota—and reduce reliance on imported refined products, enforcing compliance in the marginal field segment is seen as critical to revitalising the sector.
The June 30 deadline remains firm for most operators, with regulators expected to begin revocation proceedings shortly after. However, there may still be a narrow window for reprieve—if operators can prove they are ready to turn their fields into producing assets.
