With the Federal Government setting a production target of 2.06 million barrels per day in 2025, the Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, on Tuesday, threatened to withdraw oil blocks from owners who have failed to develop them.
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Sen. Lokpobiri stated that the government will begin implementing the “drill or drop” provisions of the Petroleum Industry Act (PIA) as part of its drive to boost oil production.
As of February 2025, oil production was reported at 1.67 million barrels per day by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).
A statement by the Minister’s Media Aide, Nneamaka Okafor, said that Senator Lokpobiri made this remark at a Cross-Industry Group meeting held in Florence, Italy, organized by International Oil Companies (IOCs) operating in Nigeria.
The meeting focused on challenges, expectations, and strategies to enhance the sector’s contributions to domestic energy needs and regional expansion across Sub-Saharan Africa.
According to the Minister, “We cannot continue to have assets sitting idle for 20 to 30 years without development. If you are not utilizing an asset and it remains underdeveloped for decades, it neither adds value to your books nor to us as a country.
“We encourage industry players to explore collaborative measures such as shared resources for contiguous assets, farm-outs, and the release of underutilized assets to operators ready to invest in production. Otherwise, like any responsible government, we will take back these assets and allocate them to those willing to work.”
The Minister also urged operators to consider farm-out agreements for assets located near existing infrastructure, rather than incurring high costs on new Floating Production Storage and Offloading (FPSO) units.
Lokpobiri called on IOCs in Nigeria to ramp up investment in the oil and gas industry, noting that President Bola Ahmed Tinubu’s administration has provided all necessary incentives to ensure seamless and profitable operations.
Sen. Lokpobiri explained that while IOCs have cited Engineering, Procurement, and Construction (EPC) contractors as a challenge, EPCs will only commit when they see strong investment decisions from industry players.
He said, “The government has done its part by providing the requisite investment-friendly fiscal policies, including the President’s Executive Order incentivizing deepwater investments. Now, the ball is in the court of the IOCs and other operators to make strategic investment decisions that will drive increased production and sustainability in the sector.”
He also emphasized the need for IOCs to support local refining efforts, noting that more refineries are coming on stream and will require a steady supply of crude oil.
To facilitate this, he stressed that ramping up production will enable Nigeria to meet both local and international obligations.
The Chairman of the Oil Producers Trade Section (OPTS), Mr. Osagie Osunbor, commended the Minister for his direct engagement with industry players and for the Federal Government’s continued efforts in advancing the sector.
“We appreciate the government’s commitment to creating a conducive environment for investment. The Minister’s engagement has provided critical insights and has also challenged us as industry players to step up efforts to increase production,” he stated.
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