Lokpobiri Orders Oil Operators to Activate Dormant Fields or Face License Revocation at 2025 NOG Energy Week

On Tuesday, July 1, 2025, during the 24th Nigeria Oil and Gas (NOG) Energy Week in Abuja, themed “Accelerating Energy Progress Through Investment, Partnerships, and Innovation,” Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, issued a stern directive to oil operators to unlock dormant licenses and re-enter shut-in wells to boost Nigeria’s crude oil production to 2 million barrels per day (bpd) by the end of 2025, aligning with the 2025 budget target of 2.06 million bpd. Lokpobiri warned that the Federal Government would no longer tolerate underperforming assets or operators lacking the technical and financial capacity to develop Nigeria’s 159 oil fields, with licenses facing revocation under the “drill or drop” policy of the Petroleum Industry Act (PIA). He emphasized, “The era of dormant fields and underperforming assets must give way to action,” signaling a re-evaluation of Joint Ventures (JVs) and Financial/Technical Services Agreements (FTSAs) to ensure alignment with national objectives.

Lokpobiri highlighted that over 60% of exploration licenses remain inactive, hampering Nigeria’s ability to meet its OPEC quota of 1.5 million bpd, with current production at 1.745 million bpd (1.452 million bpd crude, 204,493 bpd condensate) as of June 2025. He criticized companies using licenses to access capital for unrelated ventures, stating, “Joint Ventures and FTSAs are not weapons to hold the sector hostage.” The minister noted President Tinubu’s mandate to the Nigerian National Petroleum Company Limited (NNPCL) board to review operatorship arrangements, backed by reforms like fiscal incentives and streamlined regulations to attract investment, including a consultant harmonizing 273 industry fees. NNPCL’s Group CEO, Bashir Bayo Ojulari, reported 100% pipeline availability in June 2025, achieved through security interventions, and progress on the Ajaokuta-Kaduna-Kano (AKK) Gas Pipeline, set for Q4 2025 completion (web:0,5,9,21). Despite $17 billion in new investments in 2024, underinvestment persists, with only five of 60 marginal fields from the 2021 bid round productive.