Mkpoikana Udoma
Port Harcourt — The Federal Government has called on International Oil Companies, IOCs, operating in the country to match government efforts with strategic investments, particularly by announcing Final Investment Decisions, FIDs, to boost crude oil production and energy security.
Speaking at the Cross Industry Group meeting in Florence, Italy, Minister of State for Petroleum Resources (Oil), Sen. Heineken Lokpobiri,
emphasized that the Tinubu administration has provided all necessary incentives to ensure smooth and profitable operations for oil majors in Nigeria.
Lokpobiri urged companies to explore collaborative solutions, including shared resources for contiguous assets and the release of underutilized assets to operators willing to invest in production.
“The Government has done its part to provide the requisite and investment-friendly fiscals. The ball is now in the court of the IOCs and other operators to make strategic investment decisions that will drive increased production and sustainability in the sector.”
Addressing industry concerns about Engineering, Procurement, and Construction, EPC contractors, Lokpobiri argued that EPC firms would only engage if IOCs demonstrate strong investment commitments.
“While IOCs have highlighted EPC contractors as a challenge, the truth is EPCs will not come unless they see strong commitments from industry players.”
The Minister also underscored the importance of domestic crude supply in ensuring national energy security.
He stressed that the best solution is to increase production, balancing domestic supply obligations with external commitments.
“Domestic crude supply is essential to national energy security. The best solution to this challenge lies in increasing production, which will ensure a balance between domestic supply obligations and external commitments.”
The minister warned that the government would begin strict implementation of the “drill or drop” provisions of the Petroleum Industry Act, PIA, to ensure idle oil blocks are put to use.
“We will begin to implement the ‘drill or drop’ provisions of the PIA where necessary. It is in the best interest of the country that all fallow wells go to work.”
