Nigeria’s Oil Sector Undergoes Major Shake-Up as Minister Demands Action from Operators
In a bold move to revitalize Nigeria’s oil and gas industry, Minister of State for Petroleum Resources, Sen. Heineken Lokpobiri, has issued a stern warning to operators: step up production or face re-evaluation of their partnerships. This directive comes as the country seeks to boost national production and derive maximum value from its upstream assets. Speaking at the 2025 Nigeria Oil and Gas (NOG) Energy Week in Abuja, Lokpobiri emphasized that the era of dormant fields and underperforming assets is over, and it’s time for operators to take responsibility.
The minister’s message is clear: Nigeria will no longer tolerate underperformance and dormant assets in the oil and gas sector. Operators are expected to re-enter shut-in wells and convert dormant licenses into measurable output. Lokpobiri stressed that the government is prepared to re-evaluate existing partnerships to ensure they align with national objectives for resource development and economic value creation. With global financing for oil and gas projects tightening, the federal government is determined to make the most of its resources.
Lokpobiri also cautioned against companies using licenses as a means to access capital, only to divert it to unrelated ventures. He emphasized that Joint Ventures and Financial/Technical Services Agreements (FTSAs) are built on trust and should be used to act in the nation’s best interest. The minister’s words serve as a wake-up call to operators, urging them to step up or step aside. The federal government has implemented reforms, executive orders, and fiscal incentives to ease operators’ work and make investment more attractive.
As Nigeria’s oil and gas industry undergoes this significant transformation, the message from the minister is unmistakable: it’s time for action, not words. With the country’s resources being a critical component of its economic growth, the government is determined to ensure that they are utilized effectively. As Lokpobiri aptly put it, "Operators must wake up to the responsibility they hold; the era of dormant fields and underperforming assets must give way to action." This new era of accountability and responsibility is set to shape the future of Nigeria’s oil and gas sector, and the world will be watching.
