Latest update from Sen. Heineken Lokpobiri Ph.D (Federal Minister Of Petroleum Resources State, Oil)
Latest update from Sen. Heineken Lokpobiri Ph.D
(Federal Minister Of Petroleum Resources State, Oil)
The Federal Government, under the leadership of President Bola Ahmed Tinubu, has provided every necessary incentive to ensure seamless and profitable operations for IOCs in Nigeria. Now, it is imperative for these industry players to match the Government’s efforts with increased investment by announcing Final Investment Decisions (FIDs).
I made this statement at the Cross Industry Group (CIG) Meeting held in Florence, Italy, and organized by the IOCs operating in Nigeria, discussing the challenges, expectations, and measures to enhance the sector’s contributions towards domestic energy needs and regional expansion across Sub-Saharan Africa.
I emphasized that while IOCs have highlighted Engineering, Procurement, and Construction (EPC) contractors as a challenge, EPCs will not come unless they see strong commitments from industry players. The Government has done its part to provide the requisite and investment-friendly Fiscals, the ball is now in the court of the IOCs and other operators to make strategic investment decisions that will drive increased production and sustainability in the sector.
We must also recognize that domestic crude supply is essential to national energy security. The best solution to this challenge lies in increasing production, which will ensure a balance between domestic supply obligations and external commitments.
I also encouraged industry players to explore collaborative measures such as shared resources for contiguous assets and the release of underutilized assets to operators ready to invest in production. I emphasized the fact that we will begin to implement the “drill or drop” provisions of the Petroleum Industry Act (PIA) where necessary as it is in the best intrest of the country that all fallow wells go to work.
– Sen. Heineken Lokpobiri Ph.D
(Federal Minister Of Petroleum Resources State, Oil)
