Farm Out Idle Assets, FG Urges Oil Companies

The federal government has called on oil companies operating in the country to sell their idle assets to others capable and willing to develop them, reaffirming a strengthened partnership with Chevron Nigeria Limited.

This is to accelerate Nigeria’s oil production and optimise resource utilisation.

The minister of state for Petroleum Resources (Oil), Senator Heineken Lokpobiri, in Delta State, noted that “The time has come for us to develop all available blocks. Where operators are not ready to develop, it’s better to farm out to partners rather than wait 20 or 30 years,” he said emphatically. “Our obligation as government is to provide a globally competitive environment to allow you to expand what you are already doing,” the minister stated in a release by his Media and Communication aide, Nneamaka Okafor.

During an official inspection of the NNPC/Chevron Nigeria Limited (CNL) Joint Venture EGTL facility in Escravos, Delta State, led by the minister, Lokpobiri reiterated the federal government’s commitment to sustaining policies and incentives to ensure Nigeria remains an attractive destination for energy investments.

“Since we assumed office, things have changed. Our obligation as government is to provide a globally competitive environment to allow you to expand what you are already doing,” the Minister said. “My duty is to encourage you to expand your investment in the country. We can only grow sustainable production if we have investments. As a government, our goal is to give you the best incentives to enable sustainable growth.

He also stressed that the government’s objective remains to increase production and ensure Nigeria remains attractive for capital expenditure distribution in the global oil and gas market.

Lokporibi commended the NNPC/CNL JV for its operational excellence and urged other operators to consider farming out idle assets to investors with access to capital, noting that the government is reviewing the activation of the “drill or drop” provision in the Petroleum Industry Act (PIA).

Highlighting the strong partnership with Chevron, Lokpobiri lauded the NNPC/Chevron Joint Venture for its operational excellence and collaborative spirit.

“Chevron’s commitment and performance set an example for all operators in the country.

We are working closely with Chevron because we recognise the immense value of their investment and expertise in unlocking Nigeria’s energy potential.”

Reacting to the visit and government’s initiatives, the general manager of the NNPC/Chevron Joint Venture, Segun Kuteyi, expressed deep optimism about the future: “We are excited that you are the first minister to visit here in this administration – it truly shows how serious the federal government is about supporting the energy sector. Your consistency and hands-on approach are exemplary.”

Kuteyi reaffirmed Chevron’s long-term commitment: “We have a North Star strategy and are seeing the release of resources from our corporate office. We are investing significantly in our operations to monetise the resources already in place. The future is really bright for Chevron in Nigeria, and we are proud to partner with the government to drive this agenda forward.”

Echoing similar sentiments, Chevron’s chairman and managing director, Jim Schwartz, highlighted the enabling effect of the Petroleum Industry Act, saying, “When we think about the future, the government’s support and the PIA in sticking with the path of attracting investment is really good for us. We have a lot of resources we still want to develop here that will enable growth in production.”

He underscored Chevron’s enduring presence: “After 60 years, we remain proud to be one of the largest supporters in the country. Our commitment to Nigeria is unwavering, and we look forward to building on this partnership with the Federal Government.”

The minister concluded by reiterating the government’s objective: “Our mission is clear – to increase production and ensure Nigeria remains an attractive destination for global oil and gas capital expenditure. For this to happen, everyone must play their part. We encourage operators to either develop their blocks or farm out to those who can, to guarantee that Nigeria maximises its oil output potential.”

This visit and dialogue with Chevron underscore a robust and growing collaboration aimed at unlocking Nigeria’s oil and gas resources, driving sustainable production, and ultimately boosting economic growth through sound investment and partnership.