The Minister of state for Petroleum Resources (Oil), Sen. Heineken Lokpobiri, has warned those without technical expertise and funds for investment to stay away from the nation’s oil and gas sector.
He handed down the warning while speaking at the ongoing 24th edition of the NOG Energy Week and conference with the theme “Accelerating Energy Progress Through Investment, Global Partnerships and Innovation”.
He said: ” In our 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. 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.
“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”.
Lokpobiri observed that the nation’s oil and gas industry had witnessed far too many cautionary tales of this nature, and 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”, he warned.
The Minister disclosed that the Federal Government is prepared to re-evaluate existing partnerships in the oil and gas sector in order to ensure that they align with the nation’s strategic national objectives for resource development and economic value creation.
According to the Minister, “The mandate from His Excellency, President Bola Ahmed Tinubu, to the new NNPC Ltd Board to review all existing operatorship arrangements is not just an administrative exercise it is a clear signal. Operators must wake up to the responsibility they hold. The era of dormant fields and underperforming assets must give way to action. Unlock dormant and untapped assets. Re-enter shut-in wells. Convert dormant licenses into measurable output.
“It is worth noting, as a matter office strategic concern, that one company’s production volumes before the enactment of the Petroleum Industry Act (PIA) were higher than what we are all currently delivering today even with the full benefit of the incentives and business-friendly policies embedded not just in the PIA but, even with the presidential directives.
“So, this cannot be a Governance problem. I want to put it to you, the operators, what happened? How did we get here? And more importantly, what are we going to do differently?
We must confront a reality that cannot be ignored. Last year, we stood here and spoke passionately about increasing production. Yet today, we find ourselves asking: what has truly changed? What tangible difference has been made?
The Federal Government has implemented far-reaching reforms, executive orders, fiscal incentives, streamlined regulatory processes to make the work of operators easier and investment more attractive. But the question remains: where is the output?
“We cannot continue this way. If we are serious about ramping up production and reclaiming Nigeria’s rightful place among leading oil producers, then every operator must show cause – by performance, not promises.
“We are not just chasing barrels. We are building an economy. One that reflects the aspirations of Nigerians, the commitment of this administration, and the immense potential of our resources.
“The government has done a lot, and is willing to do more, but the results must now speak for themselves. The responsibility is collective, but the obligation to deliver rests first with those holding the assets”, he asserted.
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