FG Threatens Revocation as Only 5 of 60 Marginal Oil Licences in Use

Lokpobiri emphasized that his primary goal was to increase production in the country by attracting investments and boosting revenue. He highlighted that this objective was assigned to him by President Bola Tinubu.

Heineken Lokpobiri, the Minister for Petroleum Resources (Oil), has emphasized that the federal government will not hesitate to reclaim oil assets, as only five out of the 60 licenses issued during the 2021 marginal oil field bid round are currently being utilized.

Speaking at an event organized by The Petroleum Club in Lagos, Lokpobiri stated that the government aims to increase crude oil production to enhance revenue and will not tolerate inactive oil licenses.

He emphasized that renewing or canceling licenses does not depend on personal connections or appearances, but rather on adherence to work plans. Lokpobiri expressed concern that some companies and individuals are holding onto licenses as mere souvenirs without taking any action, and he stressed that this practice will no longer be allowed.

He urged stakeholders to collaborate, pool resources, and form partnerships to address funding challenges and drive investments in the sector, highlighting the importance of avoiding a scenario where Nigeria’s rehabilitated refinery relies on imported crude from another country.

The minister highlighted that Nigeria had suffered a loss of approximately $30 billion due to decreased oil production over the past two and a half years. He emphasized that boosting crude oil production would lead to a decrease in the value of the dollar compared to the naira.

Lokpobiri explained that during the mentioned period, oil prices had been around $80 per barrel, resulting in significant financial implications. He expressed his commitment to increasing production levels through strategic investments to enhance revenue generation, citing this as a directive from President Bola Tinubu.

To achieve the goal of escalating production, Lokpobiri proposed allocating idle wells to capable individuals for exploration activities, leveraging the provisions of the Petroleum Industry Act.

By addressing issues such as inactive wells and engaging with stakeholders, including International Oil Companies (IOCs) and the Nigerian National Petroleum Company Limited, he aimed to revitalize the oil sector and boost overall production levels.