In a determined move to ramp up crude oil production in the country, the Federal Government of Nigeria has directed oil and gas operators to wake up to the responsibility by unlocking their dormant and untapped assets.
Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, gave the directive while declaring open the 2025 edition of the Nigerian Oil and Gas Week (NOG), on Tuesday in Abuja.
“Operators must wake up to the responsibility they hold. The era of dormant fields and underperforming assets must give way to action. Unlock dormant and untapped assets. Re-enter shut-in wells. Convert dormant licenses into measurable output,” he charged the operators.
Senator Lokpobiri who stated that the Federal Government remains resolute in ensuring that maximum value is derived from upstream assets currently held by operators, added that plans have been perfected to re-evaluate existing partnerships in the oil and gas sector in order to ensure that they align with the nation’s strategic national objectives for resource development and economic value creation.
“It is no longer acceptable for critical national resources to remain in the hands of companies that lack the technical or financial capacity to optimize them or worse, those who use such licenses merely as a lever to access scarce capital, only to divert it to unrelated ventures. Our oil and gas industry has witnessed far too many cautionary tales of this nature, and we must now draw a clear line.
“Let’s be clear: Joint Ventures and Financial/Technical Services Agreements (FTSAs) are not weapons to hold the sector hostage. They are frameworks built on trust that you will act in the nation’s best interest. If you cannot, it’s time to step aside or step up through partnership,” he declared.
The Minister lamented that the Federal Government has implemented far-reaching reforms, executive orders, fiscal incentives, streamlined regulatory processes to make the work of operators easier and investment more attractive, yet there is no commensurate output.
Saying: “We cannot continue this way. If we are serious about ramping up production and reclaiming Nigeria’s rightful place among leading oil producers, then every operator must show cause – by performance, not promises.
“We are not just chasing barrels. We are building an economy. One that reflects the aspirations of Nigerians, the commitment of this administration, and the immense potential of our resources.
“The government has done a lot, and is willing to do more, but the results must now speak for themselves. The responsibility is collective, but the obligation to deliver rests first with those holding the assets,” he said.
While acknowledging the misapplication of the Local Content Act in the past, the Minister assured that with the advent of President Bola Ahmed Tinubu, the industry is returning to the true tenets of the Act, one that allows companies, both large and small, to coexist and operate side-by-side.
“The era of briefcase contractors winning jobs only to sublet them to technically capable firms is coming to an end,” he added.
Emphasising the need for partnership, Lokpobiri said “We see global partnerships as a central pillar in our national energy strategy. Whether in joint ventures, technology alliances, financing consortia, or regional trade blocs we welcome partners who understand the Nigerian context, and are committed to mutual value creation.
“We are also deepening our cooperation with international bodies including APPO, IEC, and OPEC because we believe that Nigeria’s growth must catalyze Africa’s prosperity.”
On African Energy Bank, he said the bank is firmly on course and steadily approaching official launch.
“As with any institution of this magnitude, it is critical that we take the time to cross our T’s and dot our I’s.
“Advertisements for the position of Bank President have been published, and the application window has closed.
“Nigeria, as host country, has fulfilled all its legal and ancillary obligations. I am also aware that APPO and indeed Afreximbank, the co-originator of this visionary Initiative is working assiduously to convene not only the first shareholders’ meeting, which will signal the formal commencement of the Bank, but also to get its operations fully underway.
“Africa is not asleep. We are determined to take our place in the global energy financing space not only to ensure that our resources yield maximum benefit for our people, but also to serve as a catalyst for energy security. We will not let you down,” he said.
