The Federal Government has warned that oil companies holding idle licences without investment capacity risk losing them, as Nigeria’s crude oil output rises to 1.8 million barrels per day.
The Federal Government has warned that oil companies holding idle operating licences without the capacity to produce crude risk having them revoked.
Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, issued the warning in Abuja on Wednesday at the PENGASSAN Energy and Labour Summit. He said government would no longer allow firms to hold blocks without investment at a time when the country is working to boost production.
“The Petroleum Industry Act says it is either you drill or you drop out. Why should we leave licences with people who haven’t shown capacity to invest?” Lokpobiri asked.
He disclosed that out of 12 firms granted licences, fewer than six had made the required investments. He also rejected extension requests from some companies.
Lokpobiri said reforms have pushed output to 1.8 million barrels per day, an 80 percent rise from 2023, while the target remains 2 million.
He praised PENGASSAN for its professionalism in supporting industry growth.
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