Revealed! FG threatens to withdraw licence of oil companies

• Owners of lipid blocks who person not developed them hazard having them taken distant by the FG
• This comes arsenic FG encouraged planetary lipid firms to put much successful the lipid and state sector
• FG plans to statesman implementing the "drill oregon drop" clauses of the Petroleum Industry Act successful 2025

Legit.ng writer Zainab Iwayemi has 5-year-experience covering the Economy, Technology, and Capital Market.

Senator Heineken Lokpobiri, the State Minister of Petroleum Resources (Oil), threatened to instrumentality lipid blocks distant from owners who haven't developed them.

Stakeholders emphasized that IOCs indispensable assistance section refinery efforts. Photo Credit: Contributor
Source: UGC

This comes arsenic the Federal Government of Nigeria has urged overseas lipid companies doing concern successful the state to summation their concern successful the lipid and state industry, highlighting the information that the existent medication has offered each the incentives required to warrant creaseless and palmy operations.

In keeping with the propulsion to summation lipid production, Lokpobiri stated that the authorities volition commencement putting the Petroleum Industry Act's "drill oregon drop" provisions into effect successful 2025, with the Federal Government aiming to nutrient 2.06 cardinal barrels per day.

The Nigerian Upstream Petroleum Regulatory Commission reported that lipid accumulation was 1.67 cardinal barrels per time arsenic of February 2025.

Nneamaka Okafor, the minister's media aide, said successful a connection connected Tuesday that Senator Lokpobiri issued the informing to cancel licenses during a Cross Industry Group gathering organized by IOCs operating successful Nigeria successful Florence, Italy.

The meeting's docket was to sermon expectations, challenges, and ways to amended the sector's contributions to Sub-Saharan Africa's determination maturation and home energy needs.

According to the minister,

“We cannot proceed to person assets sitting idle for 20 to 30 years without development. If you are not utilising an plus and it remains underdeveloped for decades, it neither adds worth to your books nor to america arsenic a country.“We promote manufacture players to research collaborative measures specified arsenic shared resources for contiguous assets, farm-outs, and the merchandise of underutilised assets to operators acceptable to put successful production. Otherwise, similar immoderate liable government, we volition instrumentality backmost these assets and allocate them to those consenting to spell to work.”

In bid to debar paying ample expenditures for caller floating accumulation retention and offloading units, the curate besides encouraged operators to summation their concern successful the lipid and state assemblage and to deliberation astir farm-out arrangements erstwhile assets are adjacent existing infrastructure.

He clarified that though IOCs person identified engineering, procurement, and operation contractors arsenic an issue, EPCs won't marque a committedness until they observe manufacture participants making omniscient concern choices.

He said,

“The authorities has done its portion by providing the requisite and investment-friendly fiscal policies, including the president’s enforcement bid incentivising deepwater investments. Now, the shot is successful the tribunal of the IOCs and different operators to marque strategical concern decisions that volition thrust accrued accumulation and sustainability successful the sector.”

FG said the state cannot proceed to person assets sitting idle for 20 to 30 years without development. Licenses of Dormant Oil Blocks. Photo Credit: Contributor
Source: UGC

He emphasized that IOCs indispensable assistance section refinery efforts, pointing retired that much refineries are coming upstream and volition request a accordant proviso of crude oil.

He besides emphasized that increasing accumulation will let Nigeria to fulfill its obligations some domestically and internationally.

Also speaking astatine the meeting, the Chairman of the Oil Producers Trade Section, OPTS, Mr Osagie Osunbor, commended the Minister for his nonstop engagement with manufacture players and for the Federal Government’s continued efforts successful advancing the sector.

“We admit the government’s committedness to creating a conducive situation for investment. The minister’s engagement has provided captious insights and has besides challenged america arsenic manufacture players to measurement up efforts to summation production,” helium stated.

Canadian institution eyes caller lipid and state opportunities successful Nigeria

Legit.ng reported that Canada’s Africa Oil Corporation is moving connected a woody for afloat ownership of Prime Oil & Gas Coöperatief, a Dutch entity holding indirect interests successful deep-water Nigerian fields operated by TotalEnergies and Chevron.

When the acquisition is completed it volition assistance treble Africa Oil Corporation's crude lipid accumulation to astir 35,000 barrels per day.

Reuters reports that the transaction is acceptable to reason adjacent Tuesday, marking a important measurement for the corporation's maturation strategy successful Nigeria.

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Source: Legit.ng