The Federal Government of Nigeria has issued a stern warning to companies and individuals holding oil block licenses without demonstrating the capacity to attract investment or undertake exploration activities. This warning comes with the threat of license revocation for those who fail to comply with the requirements.
Warning Issued by Minister of State for Petroleum
In a statement released on Wednesday, August 21, 2024, in Abuja, the Minister of State for Petroleum, Heineken Lokpobiri, expressed concerns over the underperformance of several oil firms in the country. He emphasized that licenses granted for oil exploration should not be treated as mere “souvenirs” by those who hold them.
Low Compliance Among License Holders
Out of the 60 licenses recently issued during the latest oil block bidding process, only 10 companies have successfully attracted investment and commenced exploration activities. Lokpobiri highlighted this issue, noting that a significant number of license holders have failed to take meaningful steps towards oil extraction, which is detrimental to the country’s oil and gas sector.
Government’s Stance on Non-Performing License Holders
The Minister made it clear that the government would not tolerate companies holding onto licenses without the capacity or intention to utilize them for the intended purpose. Lokpobiri stated, “If those people do not use the licenses given to them to be able to raise funds and then extract the crude oil from the soil, we better take it back from them.” He further criticized those who have paid signature bonuses to the government but have not made any progress in exploration, branding them as unproductive.
Revocation as a Necessary Measure
Lokpobiri expressed his willingness to revoke licenses from non-performing companies and reallocate them to firms that have the capacity to contribute to the country’s oil production. He acknowledged that this move might create “enemies” but insisted that it was necessary for the growth and sustainability of Nigeria’s oil industry.
Conclusion
The Federal Government’s decision to revoke licenses from underperforming firms underscores its commitment to ensuring that the oil and gas sector remains productive and beneficial to the nation. Companies holding oil block licenses are now under pressure to secure the necessary investments and begin exploration or risk losing their licenses.
Related Articles
Federal Government Raises Alarm Over Renewed Smuggling of Petrol
Federal Government Considers Solar Power for Airports to Cut Costs
Federal Government Sues 36 State Governors Over Local Government Misconduct
Federal Government Raises Minimum Wage Proposal to N54,000
Federal Government Takes Action Against Food Smuggling as Truck Drivers Face Growing Threats
Subscribe to Follow Global Trends for daily global news.
Make Money Online Working Remotely
To Advertise, send a mail to advertise@followglobaltrends.com
Find Out How To Make Money As A Full Time Writer/Blogger
Written By Fortune Davidson