The Federal Government has declared an end to the era of dormant oil field licenses, warning that companies lacking the technical and financial capacity to develop oil fields will have their licences withdrawn.
Minister of State for Petroleum Resources (Oil), Sen. Heineken Lokpobiri, said the government was determined to maximize oil production by ensuring that only serious investors retain access to Nigeria’s hydrocarbon resources.
The warning was given on Tuesday at the ongoing 2025 Nigeria Oil and Gas Energy Week 2025 in Abuja, with the theme, “Accelerating Energy Progress Through Investment, Global Partnerships and Innovation”.
Lokpobiri said the government will no longer tolerate companies that use licenses as a lever to access scarce capital, only to divert it to unrelated ventures.
“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,” he said.
“The government has taken concrete steps to implement this policy, engaging an international consultant to evaluate the 273 fees and rates faced by oil companies in the country.
*The aim is to align these fees with international best practices and create a more favorable business environment for oil and gas operators.”
In a related development, Minister of State for Petroleum Resources (Gas), Mr. Ekperikpe Ekpo, noted the importance of developing Nigeria’s vast gas reserves.
“Nigeria has proven gas reserves of over 200 trillion cubic feet, yet value would only be created when resources are developed and utilized,” he said.
Ekpo said the decade of gas initiative is focused on translating the country’s gas wealth into tangible socio-economic benefits, including driving industrialization, expanding power generation, increasing domestic Liquefied Petroleum Gas (LPG) usage, deepening gas-to-transport adoption, and growing gas export capacity.
The Ajaokuta-Kaduna-Kano (AKK) Gas Pipeline project has made significant progress, with the pipeline successfully crossing the River Niger.
Group Chief Executive Officer of NNPC Ltd, Engr. Bashir Bayo Ojulari, described the development as a significant milestone, achieved through effective contract reengineering and industry collaboration.
Ojulari also disclosed that for the first time in a long while, the nation enjoyed 100% crude oil pipelines availability throughout June 2025, thanks to industry-wide security interventions led by NNPC Ltd.
“This feat has helped to boost crude oil production,” he said, calling for more investments to further boost production.
Author
Leave a comment