Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, has warned oil operators that the Federal Government will no longer tolerate dormant oil wells and underperforming assets in Nigeria’s petroleum sector.
Speaking on Tuesday in Abuja at the 2025 Nigeria Oil and Gas (NOG) Energy Week, Lokpobiri directed operators to unlock idle assets and convert dormant licences into measurable output, urging them to re-enter shut-in wells as a matter of priority.
“Operators must wake up to the responsibility they hold; the era of dormant fields and underperforming assets must give way to action,” he said.
He added that the government was prepared to re-evaluate existing partnerships to ensure alignment with national objectives centred on resource development and economic value creation.
“This objective has taken on greater urgency as global financing for oil and gas projects continues to tighten, making it increasingly difficult for operators to secure the capital needed to develop these assets,” he noted.
Lokpobiri stressed that critical national resources could no longer remain in the hands of companies lacking the technical or financial capacity to optimise them.
“We will also not allow those who use such licences as a lever to access capital, only to divert it to unrelated ventures. Our oil and gas industry has witnessed far too many cautionary tales of this nature, and we must now draw a clear line,” he warned.
The minister said that existing frameworks such as Joint Ventures and Financial/Technical Services Agreements (FTSAs) must not be used to stall sector progress.
“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 added.
He explained that President Bola Tinubu’s directive to the new Nigerian National Petroleum Company Limited (NNPC Ltd.) board to review all operatorship arrangements signalled the government’s resolve to demand accountability.
Lokpobiri also highlighted various reforms and incentives already implemented to ease operations and attract investment, including executive orders, fiscal measures, and streamlined regulatory procedures.
(NAN)