Revive Dormant Oil Assets, Lokpobiri Tells Operators

Minister of state for Petroleum Resources (Oil), Senator Heineken Lokpobiri, has issued a stern warning to oil operators over the persistent issue of dormant and underutilised oil fields in Nigeria.

He declared that the federal government under President Bola Ahmed Tinubu will no longer tolerate critical national resources being held by companies that fail to develop them or use them merely as financial leverage.

Speaking at the opening session of the 24th NOG Energy Week (NOG) on Tuesday, in Abuja,.Lokpobiri warned that the country will no longer tolerate dormant oil fields and underutilised assets, especially from companies lacking the technical or financial capacity to optimise them.

“It is no longer acceptable for critical national resources to remain in the hands of companies that use such licenses merely as leverage to access scarce capital and divert it to unrelated ventures,” Lokpobiri stated emphatically before local and international stakeholders gathered in Abuja.

He said that the government, under the directive of President Bola Ahmed Tinubu, has mandated the NNPC Ltd Board to review all existing operatorship arrangements in the industry—a move he described as “a clear signal” to non-performing companies.

“Joint Ventures and Financial/Technical Services Agreements are not weapons to hold the sector hostage,” Lokpobiri stressed. “If you cannot act in the nation’s interest, then step aside or step up through partnership.”

The minister expressed disappointment that, despite the enactment of the Petroleum Industry Act (PIA) and other reform initiatives, production output has not improved.

He pointed out that a single operator produced more barrels before the PIA was signed than the entire industry now does under improved conditions.

“This cannot be a governance problem. What happened? And more importantly—what will we do differently?” he asked pointedly. “The government has done a lot and is willing to do more, but the results must now speak for themselves.”

He challenged oil operators to “show cause—by performance, not promises,” insisting that boosting production is central to rebuilding Nigeria’s economy and fulfilling the aspirations of its people.

Addressing engineering, procurement, and construction (EPC) firms, Lokpobiri announced a new era of strict adherence to the Local Content Act, promising an end to the practice where “briefcase contractors” win bids only to subcontract them to capable firms.

“We are returning to the true spirit of the Local Content Act—one that ensures both large and small companies coexist and grow together,” he said.

He urged EPC companies to reinvest in Nigeria and stop limiting their presence to exhibition stands at industry events.

The minister reaffirmed Nigeria’s commitment to global partnerships as a critical component of its energy strategy.

He emphasized collaboration in joint ventures, technology transfer, financing, and diplomacy, citing strengthened ties with organizations like APPO, OPEC, and IEC.

“We believe Nigeria’s growth must catalyze Africa’s prosperity,” Lokpobiri stated. “We will continue to play a leading role in shaping Africa’s voice in global energy diplomacy.”

He also gave an update on the much-anticipated African Energy Bank, describing it as a transformative project that will reshape energy financing on the continent. Lokpobiri confirmed that Nigeria, as host country, has fulfilled all obligations, and the appointment process for the bank’s leadership is underway.

“We are firmly on course for the official launch,” he revealed. “Africa is not asleep—we are determined to take our place in the global energy financing space.”

Declaring the weeklong conference officially open, Lokpobiri called on stakeholders to move beyond speeches and embrace bold action.

“This is not just a conference. It is a call to act,” he said. “We have the resources. We have the talent. Now, we are building the right environment. Let us accelerate progress not for ourselves alone, but for the millions of Nigerians whose lives depend on this industry.”

The Nigerian Oil and Gas Conference is the country’s flagship energy gathering, bringing together leaders from government, industry, finance, and civil society to shape the future of Nigeria’s petroleum sector.

This year’s theme is “Accelerating Energy Progress Through Investment, Global Partnerships and Innovation.”