FG to revoke licenses of unutilised oil well owners

…Urges players to strengthen Nigerian banks with funding

By Emmanuel Atokolo

The Federal Government has revealed plans to revoke licenses of unutilized oil well owners.

The Oil and Gas sector has in recent times been plagued with crises ranging from how to increase oil production to oil theft through vandalisation of pipes and also disagreements amongst key players in the sector.

However, in a special dinner organised by the Petroleum Club on the 15th of April, 2024 at the Metropolitan Club, Victoria Island, the Honourable Minister of State for Petroleum Resources, Senator Heineken Lokpobiri who was the distinguished speaker of the day noted that oil well owners who have failed to develop their wells are contributing to the nation’s woes.

In his keynote speech, the Minister noted that the quickest way to develop the economy is through oil and gas as every Country blessed with this natural resource prioritises it because of its immense value to the world at large.

According to him, drastic actions need to be taken to ramp up production in order to save the  Nigerian economy.

The Honourable Minister emphasised that President Bola Ahmed Tinubu has given him a mandate to ensure that production of Oil is ramped up quickly and all issues be sorted out  promptly amongst stakeholders and regulators.

Lokpobiri urged individuals in the sector who have been licensed should invest in the sector to ensure that resources needed to expand and increase production and generate profit.

He argued that Nigeria underproduces oil barrels per day and can be further improved by producing 3- 5 million barrels per day.

“A barrel sells for about 80 dollars and if 5 million barrels are produced per day, it will significantly impact the economy, but it can only be possible if we invest,” he said.

He also pointed out that the difference between Nigeria and other Oil producing countries, most notably in the Middle East is that they have the money to fund the sector but Nigeria does not which is why the Presidency has been on official trips to liaise with potential investors to boost the sector and economy.

He stated that he is making moves to revoke licenses of those not investing as only those who are financially capable of investing will be licensed in his administration.

He revealed that past licensed individuals have in the past been going around with licenses but do nothing tangible with it.

“All that must change as you must be actively drilling an oil well or have the capacity to drill one and adhere to a work plan provided before anyone will get a license. According to him, it’s time to separate the men from the boys,” he said.

In this regard, he cleared the air by stating that age is not a determinant but financial capacity is the benchmark.

On the issue of a global campaign against fossil fuel in Nigeria, he emphatically stated that fossil fuel production will not be stopped because the US produces about 40 million barrels per day so the campaign against Nigeria is hypocritical.

“No country is slowing down, therefore, we should not,” he concluded.

Speaking further, he said that Nigeria is currently in competition with Ghana to house the headquarters of the African Energy bank as it has a huge potential to generate about 120 million dollars if it is located in Nigeria.

He noted that many investors complain that many Nigerian banks are not strong enough for their investments.

“Put your money in the banks to make it strong,” he said, encouraging the players.