FG to Revoke Licences of Dormant Oil Field Operators – Lokpobiri Declares at NOG Energy Week
The Federal Government has issued a stern warning to dormant oil field operators, stating that their licences will be revoked if they fail to commence exploration within a stipulated timeframe.
This declaration was made by the Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, at the ongoing Nigeria Oil and Gas (NOG) Energy Week in Abuja. The move, he explained, is part of a broader effort to ramp up national oil production and ensure that Nigeria meets its OPEC production quota and 2025 budgetary targets.
“The era of acquiring oil field licences and leaving them undeveloped is over,” Lokpobiri said. “Only operators with the technical and financial capacity to fully exploit these fields will be allowed to retain access.”
He emphasized that the government has zero tolerance for companies holding licences as leverage to access scarce capital, only to redirect funds to unrelated sectors. “This industry has suffered too many cautionary tales. It’s time to draw the line,” he said.
In a bid to align Nigeria’s oil sector with global best practices, the minister disclosed that the government had hired an international consultant to review the 273 fees and rates levied on oil companies operating in the country.
Production and Investment Drive
Nigeria is currently producing approximately 1.745 million barrels of crude oil per day (bpd), and the government is targeting two million bpd by the end of 2025. Lokpobiri urged the Nigerian National Petroleum Company Limited (NNPC Ltd.) to adopt an ambitious stance to surpass this production goal.
He noted that for a decade, Nigeria experienced a drought in oil and gas investments due to legal uncertainties. However, since 2023, reforms and deliberate policy actions have boosted investor confidence, attracting new investments into the sector.
Lokpobiri also called on the National Assembly to reduce frequent legislative summons of International Oil Companies (IOCs) and other industry stakeholders, which he described as disruptive to operational efficiency.
Gas Sector Push
Also speaking at the event, Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, reiterated Nigeria’s commitment to monetizing its over 200 trillion cubic feet of proven gas reserves. He highlighted the “Decade of Gas” initiative as a key national strategy to transform gas into socio-economic gains, including powering industries, expanding electricity generation, boosting LPG adoption, and increasing gas exports.
Milestone for AKK Pipeline Project
In a related development, the Group CEO of NNPC Ltd., Engr. Bashir Bayo Ojulari, announced a major breakthrough in the Ajaokuta-Kaduna-Kano (AKK) Gas Pipeline project. He said the pipeline has successfully crossed the River Niger, a critical milestone that brings the project closer to completion by the fourth quarter of 2025.
Ojulari also noted that Nigeria recorded 100% crude oil pipeline availability in June 2025, attributing the achievement to improved security and collaboration across the industry. He added that NNPC Ltd.’s ability to meet its cash-call obligations and the opportunities provided by the Petroleum Industry Act (PIA) have further empowered the company to lead industry growth.
The 2025 NOG Energy Week continues in Abuja, attracting global industry players focused on Nigeria’s energy future.
