Godsent Ogbebor
FG Threatens to Revoke Idle Oil Blocks, Urges IOCs to Invest
The Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, has warned oil block owners who fail to develop their assets that their licenses will be revoked.
Speaking at a Cross Industry Group meeting in Florence, Italy, Lokpobiri emphasized the Federal Government’s commitment to increasing Nigeria’s oil production, which is targeted at 2.06 million barrels per day in 2025.
He stated that the government will enforce the “drill or drop” provision of the Petroleum Industry Act to prevent assets from sitting idle for decades.
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He urged oil operators to consider farm-out agreements and shared resources to maximize production while calling on international oil companies (IOCs) to ramp up investments, especially in local refining efforts.
Meanwhile, Nigeria made the biggest oil production cut among OPEC members in March, reducing output by 50,000 barrels per day to comply with quota limits.
The cut follows delays in loading Bonny Light crude due to an explosion at the Trans-Niger Pipeline, which has frequently disrupted exports.
