The federal government has declared that it would no longer approve the renewal of licenses to oil producers for oil fields that are left undeveloped.
Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri who announced this, charged oil producers in the country to put their oil fields to work or relinquish them.
Lokpobiri gave the charge while addressing a gathering of the oil producers trade section, a group comprising five oil giants operating in Nigeria, at the Cross Industry Group (CIG) meeting in Istanbul, Turkey.
Recall that Lokpobiri had previously said that only five out of 60 licenses from the 2021 marginal oil field bid are currently productive.
He declared, “The era of renewing licenses without development is over. We cannot afford to hold valuable fields in perpetuity,” he stated. “It’s either you put them to work or relinquish them. The era of renewing licenses without development is over.”
He added that the government’s recent initiative to launch bid for thirty-one (31) oil and gas blocks will be a cornerstone of Nigeria’s strategic development.
He therefore, called for greater commitment from industry players to support Nigeria’s ambitious plan to increase oil production by over one million barrels within the next 24 months.
The minister, in a statement by his special adviser on Media and Communication, Nneamaka Okafor, outlined Nigeria’s dual approach to ensure the future of its petroleum industry by focusing on maximising crude oil production and adapting to a cleaner energy transition.
“In the short term, our focus remains on increasing revenue from crude oil production,” Lokpobiri stated, affirming the government’s commitment to addressing operational bottlenecks and upgrading infrastructure.
Recognising the urgency of cost reduction, he highlighted government measures aimed at streamlining operations, particularly in the upstream activities, to remain competitive in a fluctuating global market.
A significant part of the government’s vision involves balancing energy demands with environmental considerations.
Lokpobiri noted, “The world is moving toward cleaner energy, and Nigeria must be part of that transition,” adding that the government has prioritised natural gas as a cleaner alternative while actively exploring renewable energy options to diversify Nigeria’s energy mix.
The minister extended invitation to industry players to embrace investment in cleaner, more sustainable methods, stressing that Nigeria’s transition will remain pragmatic and focused on local priorities.
Acknowledging the persistent security challenges in the Niger Delta, the minister reported ongoing efforts to protect Nigeria’s oil infrastructure through enhanced security measures.
“We are engaging communities and encouraging partnerships that foster local ownership of critical assets,” he said.
He highlighted these efforts to include increased military support, particularly from the Nigerian Navy and Joint Task Force (JTF), combined with community engagement and economic empowerment initiatives to combat pipeline vandalism and oil theft.
The minister added that the government has also implemented technology-driven solutions, including drone and satellite surveillance, to enhance the security framework and detect potential threats to the industry.
