LOKPOBIRI BLASTS OIL OPERATORS OVER MISMANAGEMENT, WARNS OF CONSEQUENCES
GREATRIBUNETVNEWS–Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, has condemned the mismanagement of Nigeria’s oil and gas assets, warning operators that they must improve performance or step aside. Lokpobiri emphasized that companies lacking the technical or financial capacity to develop strategic national resources will face consequences.
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Key Points:
– Warning to Operators: Lokpobiri urged companies to either improve their performance or risk losing their licenses.
– Mismanagement Condemned: The minister condemned the mismanagement of Nigeria’s oil and gas assets, emphasizing the need for responsible operations.
– Capacity Requirements: Lokpobiri stressed that companies must have the necessary technical and financial capacity to develop strategic national resources [1].
Implications:
– Improved Performance: Companies will be expected to demonstrate improved performance and adherence to regulations.
– Accountability: The minister’s warning suggests a renewed focus on accountability and transparency in the oil and gas sector.
– *National Interest*: Lokpobiri’s stance reflects a commitment to protecting Nigeria’s national interests and ensuring the responsible development of its oil and gas resources.
Speaking at the 24th Nigeria Oil and Gas (NOG) Energy Week in Abuja, Lokpobiri condemned the practice of using oil and gas licenses merely as leverage to access capital, which is then diverted to unrelated ventures.
He described such behavior as detrimental to the country’s progress.
“We must now draw a clear line,” the minister said, adding: “These are frameworks built on trust; trust that operators will act in the nation’s best interest. If you cannot deliver, then either step aside or step up through genuine partnerships.”
Lokpobiri emphasized the need for Nigeria to unlock dormant reserves, re-enter shut-in wells, and turn idle licenses into tangible production. He noted that the Federal Government, under the directive of President Bola Tinubu, has mandated the new NNPCL Board to review all operatorship agreements.
The minister described this move as a clear call to action aimed at aligning industry operations with national development goals.
Expressing concern over declining output, Lokpobiri stated that a single company produced more oil before the Petroleum Industry Act. PIA, was enacted than the entire sector does today.
Despite incentives and policies introduced by the PIA and other presidential directives, production has not improved accordingly.
“This is not a governance failure—it’s a performance issue,” he said.
The minister highlighted several reforms introduced by the Federal Government, including executive orders, fiscal incentives, and regulatory streamlining, all aimed at supporting operators and encouraging investment.
However, he insisted that results must now follow these efforts.
“We are not merely chasing production volumes; we are building a resilient economy,” Lokpobiri said.
“The responsibility is shared, but the obligation to deliver starts with those in control of the assets.”
On the establishment of the African Energy Bank, the minister confirmed that preparations are progressing.
He noted that the application process for the role of Bank President has closed, and Nigeria has met its legal and operational commitments as the host country.
He added that the African Petroleum Producers Organization, APPO, and Afreximbank are working towards convening the first shareholders’ meeting, which will officially launch the bank’s operations.
“Africa is awake. We are positioning ourselves in the global energy finance space, not just to maximise the value of our resources, but to drive energy security and prosperity for our people,” Lokpobiri added.
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