The Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, on Tuesday read the riot act to oil companies operating in the country to either align with the federal government’s plans for the sector or relinquish their licenses, arguing that the problems of the industry were no longer governance-related.
Speaking at the ongoing Nigeria Oil and Gas (NOG) Week in Abuja, themed: “Accelerating Energy Progress Through Investment, Global Partnerships and Innovation,” Lokpobiri stressed that despite all the incentives provided by the Bola Tinubu administration, the oil companies have failed to raise production, despite several promises.
The minister insisted that it was unacceptable that certain individuals and corporate organisations will acquire the required permits to produce oil and gas, then hold on to them for years without adding to Nigeria’s total output.
He maintained that in the ongoing drive to boost national oil production, the federal government remains resolute in ensuring that maximum value is derived from upstream assets currently held by operators.
According to him, this objective has taken on greater urgency as global financing for oil and gas projects continues to tighten, making it increasingly difficult for all operators to secure the capital needed to develop these assets.
He said: “It is no longer acceptable for critical national resources to remain in the hands of companies that lack the technical or financial capacity to optimise 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.
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