FG cracks down on dormant oil licenses to boost production

The federal government has declared an end to the practice of oil companies acquiring field licenses and leaving them undeveloped.

Speaking at the Nigeria Oil and Gas Energy Week in Abuja, Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, warned that licenses held by companies lacking the financial or technical ability to develop oil fields will be revoked.

The move is part of efforts to meet Nigeria’s OPEC production quota and 2025 budget targets by ensuring that only committed investors manage the country’s hydrocarbon resources.

Senator Lokpobiri said global financing for oil and gas projects has tightened, making it vital that national resources are actively developed rather than held dormant or used merely to access capital for unrelated activities.

The government is also reviewing fees and charges faced by oil firms to align them with international standards.