Mkpoikana Udoma
Port Harcourt — The Federal Government has called on indigenous oil and gas operators to deepen collaboration and eliminate dormant assets, warning that idle assets add no value to Nigeria’s energy sector or the broader economy.
Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, made the call while representing President Bola Ahmed Tinubu at the 10th Anniversary of the Independent Petroleum Producers Group, IPPG.
“As a policy position, we cannot overemphasize the importance of collaboration among operators in the sector, because an idle asset adds no value,” Lokpobiri said.
“It is better to hold a piece of a whole than a whole of nothing. Asset ownership must translate into production, efficiency, and national benefit.”
The minister said the Renewed Hope Administration is deliberately pushing for increased production through reduced operating costs, stronger partnerships among indigenous operators, and strict compliance with existing laws.
According to him, government reforms under the Petroleum Industry Act, PIA, have created a more stable and predictable operating environment for investors.
“I highlighted the deliberate steps taken by the Renewed Hope Administration to create a stable and enabling environment through consistent implementation of the PIA, improved regulatory clarity, faster approvals, and enhanced security across oil and gas assets,” Lokpobiri said.
He noted that with security challenges significantly reduced across critical oil and gas infrastructure, operators must now focus on efficiency, innovation, and shared infrastructure to unlock value.
“With security challenges significantly reduced, operators must now prioritize efficiency, innovation, shared infrastructure, and global best practices,” he stated.
Lokpobiri also pointed to recent divestments and collaborative business models as evidence of growing indigenous capacity in the sector.
“I must draw your attention to successful divestments and collaborative models that have unlocked value and demonstrated indigenous capacity,” he said, while commending IPPG members for their ingenuity.
However, the minister cautioned against pursuing production gains outside the legal framework.
“No production gains should be pursued outside the framework of the PIA, as long-term growth depends on discipline, compliance, and a shared medium-term vision for the sector,” he stressed.
He reaffirmed the Federal Government’s commitment to policies that drive efficiency, boost output, and ensure that Nigeria’s oil and gas assets deliver sustainable value to the nation.
