Minister of State Petroleum Resources (Oil), Senator Heineken Lokpobiri, on Tuesday, threatened to withdraw oil blocks from owners that have failed to meet a production target of 2.06 million barrels per day set by the federal government this year.
According to Lokpobiri, the government will begin implementing the “drill or drop” provisions of the Petroleum Industry Act (PIA) in line with the 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 Media Aide to the Minister, Nneamaka Okafor said Senator Lokpobiri stated this at a Cross Industry Group meeting held in Florence, Italy, organized by 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.
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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 go to work.”
The Minister also urged operators to consider farm-out agreements where assets are close to existing infrastructure, rather than incurring high costs on new Floating Production Storage and Offloading (FPSO) units.
Lokpobiri urged International Oil Companies, IOCs, in Nigeria to ramp up investment in the oil and gas industry, noting that the administration of President Bola Ahmed Tinubu has provided every necessary incentive to ensure seamless and profitable operations.
He further explained that while IOCs have pointed to Engineering, Procurement, and Construction (EPC) contractors as a challenge, EPCs will only commit when they see strong investment decisions from industry players.
“The Government has done its part by providing the requisite and 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 said.
The Minister 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 make this easy and possible, 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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