NUPRC Revokes Oritsemeyin Rig Licence After Safety Lapses at Well Operations

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has revoked the operating licence of the Oritsemeyin Rig, ordering its shutdown as soon as its ongoing well operations conclude. The licence revocation followed severe safety and operational breaches identified during drilling operations of the UDIBe-2 wellbore. The rig is operated by Selective Marine Services Limited (SMSL).

In a letter dated September 11, 2025, and signed by NUPRC Chief Executive Gbenga Komolafe, the regulator informed SMSL that its annual licence to operate the Oritsemeyin Rig has been revoked. The letter cites a series of incidents including a “kick”—an unplanned influx of formation fluids such as oil, gas, or water into the wellbore—which led to non-productive time (NPT) losses, added costs, and a forced sidetrack of the well.

Prior to revocation, SMSL was formally notified of the safety issues in early June 2025. On June 5, the regulator issued a notice of culpability, giving a 21-day window for the operator to address the deficiencies, including correcting safety management lapses. When adequate remedial measures were not taken, a reminder was issued in July. Despite these warnings, SMSL failed to rectify the problems, prompting NUPRC to exercise its powers under Section 97 of the Petroleum Industry Act (PIA) 2021.

The act empowers the regulator to enforce good oilfield practices, ensure operational safety, promote technical excellence, and preserve both environmental and commercial sustainability. Choosing to escalate the matter, NUPRC also disqualified the rig from any future renewal protocol, meaning the operator cannot reapply for permission to operate the rig under current licence terms.

NUPRC emphasized that the decision was not taken lightly, but was necessary to protect lives, the environment, and ensure standards in the rapidly evolving upstream sector. They noted that lapses of the kind that occurred on UDIBe-2 wellbore pose serious risk of blowouts, equipment damage, and even loss of human life, should safety controls fail to contain them.

For industry watchers and oil-field operators, the move signals a tightening regulatory environment. The upstream oil and gas sector is under increasing pressure to comply fully with global best practices, particularly with Nigeria seeking to attract more foreign investment and increase production. The revocation of the Oritsemeyin Rig’s licence sends a message: safety failures will carry serious consequences.

Operators have expressed concern about the financial implications of such enforcement actions. Rig downtime, operational losses due to non-productive time, and forced sidetracks of wells already drive up costs substantially. For SMSL, the loss of licence and disqualification from renewals could mean major loss of revenue and reputational damage, which may extend into its relationships with clients, insurers, and partners.

From NUPRC’s perspective, the decision supports broader goals under the PIA to ensure that operators are held to account. Komolafe said regulators have a duty not just to approve operations but also to monitor and enforce compliance. Regulators are now likely to increase inspection, enforcement, and oversight of rig operators across the country to avoid similar lapses.

Community and environmental advocates welcomed the decision, saying it affirms Nigeria’s commitment to safer oil-field operations. They pointed out that drills and rigs that neglect safety protocols pose risks not only to workers but also to surrounding ecosystems, such as land, waterways, and coastal areas that could suffer from blowouts, leaks, or well instability.

In regulatory circles, the revocation is viewed as consistent with international practices where safety incidents, failure to remedy notices, and operational failures can lead to suspension, revocation of licences, or even criminal liabilities. The global oil industry generally expects operators to respond promptly to regulatory directives, particularly in relation to well control, crew training, safety equipment, and emergency response planning.

Some analysts caution, however, that enforcement must be balanced with fair warning and due process. They urge that SMSL be given transparent and complete reporting of violations, and reasonable opportunity to defend its position. They also suggest that NUPRC’s public communication be clear about exactly what corrective actions were demanded and why they were deemed insufficient.

For upstream operators, the key takeaway is that compliance can no longer be treated as optional. With higher global scrutiny on safety and environmental standards, Nigeria’s regulatory reforms demand rigorous adherence to PIA-mandated best practices. This includes proactive risk management, investment in safety systems, crew training, well control measures, and environmental protections.

As the Oritsemeyin Rig shuts down following the conclusion of operations on the UDIBe-2 well, attention now turns to how SMSL responds. Will it appeal the revocation, or make visible changes to safety protocols? And more broadly, will other operators take this as a signal to audit and improve their practices preemptively?

For NUPRC, the decision reinforces its mandate to ensure that abuses, or safety failures, are met with regulatory consequences. It demonstrates that operational safety is not just a box to check, but a core requirement under law.

In conclusion, the licence revocation of the Oritsemeyin Rig underscores a significant turning point in Nigeria’s upstream petroleum regulation. Safety, environmental stewardship, and operational excellence are being enforced with greater seriousness under the PIA 2021. For operators, stakeholders, and communities alike, this development reaffirms that rig operations carry heavy obligations—and that failure to meet those obligations has real repercussions.