The Federal Government of Nigeria has issued a stern warning to companies and individuals holding oil block licenses who have not secured investments or begun exploration activities, indicating that their licenses will be revoked if they fail to comply.
This announcement was made by the State Minister of Oil, Heineken Lokpobiri, during a statement in Abuja, where he addressed challenges in the oil and gas sector.
Lokpobiri highlighted that out of the 60 licenses issued during the recent oil block bidding, only 10 companies have successfully attracted investment and initiated exploration.
He criticized those who treat their licenses as “souvenirs” without the necessary funding or commitment to exploration, stating that such licenses should be revoked and reassigned to capable investors.
The Minister emphasized the importance of a successful upstream sector for the overall health of Nigeria’s oil industry, and he expressed determination to take back licenses from inactive holders, even if it creates opposition.
This move is part of Nigeria’s broader effort to boost oil production, which has fallen significantly in recent years, and to enhance the country’s competitive position in attracting oil and gas investments.