Nigerian President Bola Ahmed Tinubu has cautioned marginal oil field licence holders in the country to reassess their capabilities and consider exiting the industry if they lack the necessary capacity. This warning was conveyed during the commissioning of the $400 million Green Energy International Limited (GEIL) crude oil export terminal in Otakikpo, Rivers State.
The President, represented by Minister of State for Petroleum Resources Senator Heineken Lokpobiri, emphasized the importance of meeting all obligations expected of marginal oil field licence holders. He stated that there is a minimum work obligation that must be met, and if licence holders are unable to fulfill this, they should explore alternative pursuits rather than wasting resources in the oil and gas sector.
The GEIL crude oil export terminal, valued at $400 million, is expected to unlock billions of barrels of reserves and generate significant economic value. With a capacity of 750,000 barrels, expandable to 3 million barrels, the facility is poised to alleviate the challenges associated with crude oil evacuation in Nigeria’s oil sector.
President Tinubu’s warning underscores the need for efficient and capable operators in the country’s oil and gas industry. The Nigerian government has been working to overhaul the sector, aiming to increase production and attract investment. The commissioning of the GEIL export terminal marks a significant step towards achieving these goals, as it is expected to contribute to the overall growth and development of the industry.
The oil and gas sector is a critical component of Nigeria’s economy, and the government’s efforts to ensure that operators are capable and efficient are crucial for the sector’s success. As the industry continues to evolve, it is likely that the government will maintain its focus on promoting transparency, accountability, and competitiveness among operators. With the GEIL export terminal now operational, attention will be on its impact on the sector and the broader economy, as well as the government’s next steps in implementing its vision for the oil and gas industry.