The Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, has threatened to revoke undeveloped oil blocks from their owners. The move aligns with the Federal Government’s push for increased investment in the oil and gas sector.
Nigeria aims for a daily crude output of 2.06 million barrels in 2025, up from February’s 1.67 million barrels, according to the Nigerian Upstream Petroleum Regulatory Commission. Lokpobiri said the government will enforce the “drill or drop” rule under the Petroleum Industry Act.
Speaking at a Cross Industry Group meeting in Florence, Italy, he criticized companies holding assets idle for decades. He urged operators to consider joint ventures, farm-outs, or surrender unused assets for reallocation.
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He emphasized that while engineering, procurement, and construction challenges exist, strong investment decisions will drive progress. The government has provided incentives, including an executive order promoting deepwater investments.
The minister also encouraged international oil companies to support local refining efforts, stressing that new refineries will need steady crude supplies. He warned that the government would reassign underutilized assets to active investors.
Meanwhile, a Media report showed Nigeria cut oil production by 50,000 barrels per day in March, the largest reduction among OPEC members. OPEC+ plans to gradually restore production, adding 138,000 barrels daily this month to stabilize global prices.
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