Concerned about the country’s declining oil revenue, the Federal Government has announced intentions to take over all idle oil wells from operators who are holding onto them. The government has also issued a stern warning, threatening to revoke licenses granted to individuals and companies that have failed to commence oil exploration activities. Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, revealed these plans during an event hosted by The Petroleum Club in Lagos.
Lokpobiri highlighted the significant loss Nigeria has incurred, estimating around $30 billion due to low oil production over the past two and a half years. The minister expressed worry over the ongoing Seplat/ExxonMobil crisis, which has resulted in the loss of approximately 480,000 barrels of crude oil per day. This crisis has greatly affected the nation’s oil production, with daily losses amounting to millions of dollars.
Austin Avuru, Chairman of The Petroleum Club, also voiced concerns regarding Nigeria’s depleting oil production and discrepancies between government figures and those of the organisation of the Petroleum Exporting Countries (OPEC). The club organized the event with the theme ‘Funding Our Way Out of the Current Crisis: Looking Up to the Oil and Gas Industry,’ aiming to address challenges and seek solutions to the ongoing crisis in the oil and gas sector.
Source: Punch