FG warns oil block owners: Use it or lose it

The Federal Government has threatened to revoke the licences of oil block owners who fail to develop their assets, as it pushes to meet a 2025 production target of 2.06 million barrels per day.

Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, issued the warning on Tuesday, stating that the government will enforce the “drill or drop” provisions of the Petroleum Industry Act (PIA) to boost output.

As of February 2025, Nigeria’s oil production stood at 1.67 million barrels per day, according to the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).

Speaking at a Cross Industry Group meeting in Florence, Italy—organized by International Oil Companies (IOCs) operating in Nigeria—Lokpobiri criticized the long-term underutilization of oil assets.

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He emphasized that oilblocks left dormant for decades add no value to either their owners or the country. “We cannot continue to have assets sitting idle for 20 to 30 years.

If you’re not developing them, we will reallocate them to those willing to invest,” he warned. He urged operators to consider farm-out agreements and shared resources for contiguous assets to maximize production and reduce costs.

Lokpobiri also called on IOCs to increase investment in Nigeria’s oil and gas sector, assuring them that President Bola Ahmed Tinubu’s administration has provided all necessary incentives for smooth and profitable operations.