NUPRC Revokes Licence of Oritsemeyin Rig After Safety Breach
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has revoked the operating licence of the Oritsemeyin Rig and ordered its immediate shutdown once ongoing well operations are concluded.
The decision was communicated in a letter dated September 11, 2025, to Selective Marine Services Limited (SMSL), the operator of the rig.
The letter was signed by the Commission’s Chief Executive, Engr. Gbenga Komolafe, and later confirmed in an official statement on Friday, September 12, 2025.
Source: Twitter
According to the Commission, the revocation followed a series of safety and operational lapses recorded during drilling activities.
What triggered the revocation
The NUPRC explained that during the drilling of the UDIBE-2 wellbore, the rig experienced a kick—an unexpected influx of formation fluids such as oil, gas, or water into the wellbore.
A kick, if poorly managed, can escalate into a catastrophic blowout, posing grave risks to workers, equipment, and the environment.
In this case, the incident resulted in several Non-Productive Time (NPT) losses, additional operational costs, and a forced sidetrack of the well.
Citing these breaches, the Commission invoked its powers under Section 97 of the Petroleum Industry Act (PIA) 2021, which mandates strict compliance with oilfield best practices and safety protocols.
Warnings ignored before action
The regulator revealed that the operator had been formally notified of culpability on June 5, 2025, and given a 21-day window to address the issues. A reminder letter followed on July 9, 2025, extending time for amicable resolution.
Despite these notices, SMSL failed to meet the stipulated requirements. Consequently, the Commission moved to revoke the annual licence to operate the Oritsemeyin Rig.
In addition, the rig has been disqualified from all future renewal protocols, effectively barring it from resuming operations in Nigeria’s upstream oil and gas sector.
NUPRC cites safety and sustainability
NUPRC stressed that the move aligns with its statutory mandate under the PIA 2021 to enforce good oilfield practices, promote operational safety, and safeguard environmental sustainability.
The Commission said the action demonstrates its commitment to technical excellence, environmental protection, and the safety of oilfield operations, while also sending a strong signal to operators about the consequences of negligence.
Industry implications
Industry analysts note that the revocation underscores the regulator’s increasing focus on compliance and risk management under the PIA framework.
For operators, the development signals stricter enforcement of international best practices in drilling and rig management.
It also raises fresh conversations around the cost of operational lapses in Nigeria’s oil and gas industry, where downtime and safety breaches can trigger both financial losses and regulatory penalties.
Source: Facebook
While Selective Marine Services Limited has yet to respond publicly, experts say the case could serve as a cautionary tale for other rig operators navigating Nigeria’s evolving regulatory environment.
NUPRC clarifies oil block license process
Legit.ng earlier reported that claims of irregularities in the 2024 Oil Block Licensing Round have been rejected by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), which maintains that the procedure closely followed current rules and regulations.
In a statement released, the NUPRC denied allegations made by an online newspaper that blocks were improperly distributed to firms with dubious eligibility and that violations of oil licensing rules had occurred.
According to Commission Chief Executive Gbenga Komolafe, the licensing cycle was carried out in complete accordance with the NUPRC's licensing regulations and the Petroleum Industry Act (PIA) of 2021. He characterised the bidding procedure as technologically advanced, competitive, and transparent.
Source: Legit.ng
