An oil and gas industry consultant, Dr. Maurice Ibe, has said the revocation of the operating licence of the Oritsemeyin Rig is a clear warning to upstream operators in Nigeria to strictly comply with safety and operational guidelines.
Dr. Ibe, who is the Group Executive Chairman of Benham Group, made this known in Abuja during an interview with the News Agency of Nigeria on Sunday.
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) had announced the revocation of the licence granted to Selective Marine Services Limited for the operation of the Oritsemeyin Rig. The regulator also directed the company to cease all operations until the completion of its current well drilling activities.
The decision was contained in a letter dated September 11, 2025, addressed to Selective Marine Services Limited and signed by the Chief Executive of NUPRC, Mr. Gbenga Komolafe.
According to the regulator, the action followed a review of incidents recorded during the drilling of the UDIBE-2 wellbore. A “kick” was reported on the rig, which resulted in several Non-Productive Time (NPT), higher costs, and a forced sidetrack of the well.
The Commission said the Oritsemeyin Rig has also been disqualified from all renewal protocols in line with the provisions of the Petroleum Industry Act (PIA 2021).
Reacting, Dr. Ibe explained that the revocation was in line with global best practices and the provisions of the PIA 2021, which mandate operators to comply with good oilfield practices, technical excellence, and safety requirements.
“Oritsemeyin apparently did not adhere to standard operating procedures and protocols,” he said. “The action of NUPRC is an indication of the importance and seriousness of the regulator in sanctioning erring operators. It is also a warning to other upstream operators to strictly conform to the standards set in the PIA 2021.”
Dr. Ibe added that serious investors should support the regulator’s firm decision, stressing that it prevents future safety issues that could escalate into major disasters. “Serious investors should applaud the action and appreciate NUPRC’s decisive action to prevent potential safety issues that can snowball into a major catastrophe for all,” he said.
A “kick” on an oil rig is the unwanted entry of formation fluids such as oil, gas, or water into the wellbore during drilling operations. This usually occurs when the pressure inside the wellbore is lower than the surrounding formation pressure. If left unmanaged, a kick can escalate into a blowout, which is the uncontrolled release of oil, gas, or other fluids from a well. Blowouts are among the most dangerous incidents in oilfield operations, as they can result in loss of life, environmental pollution, and significant economic losses.
Industry experts say the NUPRC’s decision to revoke the Oritsemeyin Rig’s licence demonstrates a renewed commitment to enforcing the safety and technical provisions of the PIA 2021. The Act, which was signed into law in 2021, is designed to reform Nigeria’s oil and gas sector by strengthening regulatory oversight, improving operational efficiency, and ensuring compliance with global standards.
The revocation of the Oritsemeyin Rig’s licence is also expected to serve as a deterrent to other operators who may be tempted to cut corners in their operations. Analysts note that the oil and gas sector is a high-risk industry where negligence can have far-reaching consequences, making strict regulatory enforcement necessary.
With Nigeria working to attract more investment into its oil and gas industry, stakeholders believe that regulatory enforcement is necessary to assure both local and international investors that operations are being conducted under strict safety and technical standards.
The incident with the Oritsemeyin Rig has also highlighted the importance of proper training, adherence to protocols, and continuous investment in safety technologies. Many industry players agree that while the sanctions may appear tough, they will ultimately strengthen the industry by encouraging discipline and operational excellence.
