The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has revoked the operating licence of Oritsemeyin Rig, directing it to cease all operations upon the completion of its current drilling assignment.
The decision, dated September 11, 2025, was communicated in a letter to Selective Marine Services Limited, operator of the rig, and signed by the Commission Chief Executive, Engr. Gbenga Komolafe.
TJ News Nigeria reports that the commission’s action follows a safety investigation that exposed serious lapses during the drilling of the UDIBE-2 wellbore, which resulted in a drilling “kick” and costly operational disruptions.
Why NUPRC Revoked Oritsemeyin Rig’s Licence
According to a statement issued by Eniola Akinkuotu, Head of Media and Strategic Communications at NUPRC, the revocation was the culmination of a thorough review process.
- During the drilling of the UDIBE-2 wellbore, the rig experienced a kick—the uncontrolled inflow of formation fluids (oil, gas, or water) into the wellbore due to a pressure imbalance.
- This caused several Non-Productive Time (NPT) incidents, leading to increased operational costs and a forced sidetrack of the well.
- The NUPRC described the event as a major operational failure with potentially catastrophic consequences if left unmanaged.
A “kick,” if not controlled, can escalate into a blowout—a dangerous and uncontrolled release of hydrocarbons capable of triggering fires, explosions, and environmental disasters.
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Regulatory Actions Taken
The NUPRC noted that:
- A formal notice of culpability was issued on June 5, 2025, in line with Section 97 of the Petroleum Industry Act (PIA) 2021.
- Selective Marine Services Limited was given 21 days to address the safety issues.
- A reminder was issued on July 9, 2025, but no satisfactory resolution was achieved.
- After the deadline lapsed, the Commission moved to enforce the law.
The official statement reads:
“Consequent upon the foregoing and pursuant to the relevant powers conferred on the Commission under the extant Petroleum Industry Act 2021, the annual licence to operate granted to Selective Marine Services Limited for the Oritsemeyin Rig is hereby revoked.”
Additionally, the rig has been disqualified from all renewal protocols, meaning it cannot apply for operational licences in the foreseeable future.
Legal Backing: Section 97 of the Petroleum Industry Act 2021
The enforcement action draws strength from the Petroleum Industry Act (PIA) 2021, which vests NUPRC with powers to:
- Regulate technical, operational, and environmental standards in Nigeria’s upstream sector.
- Enforce compliance with international best oilfield practices.
- Prioritise safety, operational integrity, and environmental sustainability.
By invoking Section 97, NUPRC sent a clear message that safety violations will attract maximum regulatory sanctions.
Implications for Nigeria’s Oil and Gas Industry
The revocation of Oritsemeyin Rig’s licence represents one of the most decisive enforcement actions taken since the PIA 2021 came into effect.
Key implications include:
- Warning to other operators: Drilling contractors must upgrade safety protocols and comply with international standards.
- Operational costs: Companies failing to enforce proper training and safety procedures risk costly penalties and licence losses.
- Stronger oversight: The regulator is expected to intensify inspections across other rigs operating in Nigeria.
Analysts believe this development will strengthen investor confidence by showing that regulators are committed to operational discipline, technical excellence, and environmental safeguards.
What This Means for Rig Operators
Rig operators in Nigeria are now expected to:
- Invest in crew training on blowout prevention and well control.
- Implement rigorous safety management systems before spud-in.
- Ensure compliance with Section 97 of the PIA to avoid sanctions.
- Adopt international safety certifications as proof of operational readiness.
The NUPRC’s enforcement action underscores its role as the watchdog of upstream petroleum operations in Nigeria.
