LOKPOBRI: ERA OF OIL LICENSE RENEWAL WITHOUT DEVELOPMENT OVER. (PHOTO).

 Lokpobri: Era of oil license renewal without development over

The era of simply renewing Petroleum Exploration Licenses without development is over in Nigeria, according to the Minister of State for Petroleum Resources (Oil) Senator Heineken Lokpobri.

He stated this to a distinguished gathering of the Oil producers trade section (a group by the five oil giants operating in Nigeria) at the Cross Industry Group (CIG) meeting  in Istanbul, Turkey.

This was contained in the statement his Special Adviser on Media and Communication, Nneamaka Okafor issued in Abuja. 

Lokpobiri called for greater commitment from industry players to support Nigeria’s ambitious plan to increase oil production by over one million barrels within the next 24 months.

He said: “We cannot afford to hold valuable fields in perpetuity,” he stated. “It’s either you put them to work or relinquish them. The era of renewing licenses without development is over.”

He said in line with international best practices, barriers to entry have been reduced through signature bonuses to attract a wider range of investors, with strict enforcement of Nigeria’s “drill or drop” policy.

The Minister emphassed that the government’s recent initiative to launch bid rounds for thirty-one oil and gas blocks will be a cornerstone of Nigeria’s strategic development. 

Each block has been meticulously selected for its potential to boost reserves and stimulate economic growth. 

The Minister received commendations from the Oil Producers Trade Section (OPTS) for his proactive approach, which was described as “a breath of fresh air” for the sector.

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 Lokpobiri’s address served as a clarion call to industry stakeholders to collaborate in securing Nigeria’s energy future. 

As he emphasised that “Nigeria’s petroleum resources hold immense value and potential. Realizing this potential requires addressing our challenges and leveraging our strengths to ensure shared prosperity and energy security.”

Presenting a strategic plan to navigate the challenges and opportunities within Nigeria’s petroleum industry. 

Lokpobiri underscored the sector’s central role in Nigeria’s economy, providing around 85% of government revenue and serving as a vital source of foreign exchange. 

As the global landscape shifts towards cleaner energy, he emphasised the necessity for Nigeria’s oil and gas sector to remain resilient, competitive, and profitable.

The Minister outlined Nigeria’s dual approach to ensure the future of its petroleum industry by focusing on maximizing crude oil production and adapting to a cleaner energy transition. “In the short term, our focus remains on increasing revenue from crude oil production,” Lokpobiri stated, affirming the government’s commitment to addressing operational bottlenecks and upgrading infrastructure.

 Recognizing the urgency of cost reduction, he highlighted government measures aimed at streamlining operations, particularly upstream activities, to remain competitive in a fluctuating global market.

A significant part of the government’s vision involves balancing energy demands with environmental considerations. 

The Minister assured stakeholders that discussions are underway to align NOGICD Act amendments with the dual goals of fostering local growth and maintaining investor confidence.