Oil Prospecting Companies In Dilemma Over New Policy

A new federal government policy aimed at maximising its crude oil potentials may have placed oil prospecting companies in tight corner.

It is not all of them though, but those that have since acquired licences for oil fields but have refused to develop them.

The Nigerian government said it would no longer tolerate that and this has technical put some flame on the bosom of affected oil prospecting firms .

Indications to the above emerged during an address by Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, at the ongoing 2025 Nigeria Oil and Gas Energy Week in Abuja.

“It is no longer acceptable for critical national resources to remain in the hands of companies that lack the technical or financial capacity to optimise them, or worse, those who use such licenses merely as a lever to access scarce capital, only to divert it to unrelated ventures”, he stated while addressing the conference.

“Our oil and gas industry has witnessed far too many cautionary tales of this nature, and we must now draw a clear line”.

According to Lokpobiri, only serious investors would be accommodated in the federal government’s resolve to maximize its oil assets.

“In our ongoing drive to boost national oil production, the Federal Government remains resolute in ensuring that maximum value is derived from upstream assets currently held by operators.

“This objective has taken on greater urgency as global financing for oil and gas projects continues to tighten, making it increasingly difficult for all operators to secure the capital needed to develop these assets.

He said the government had engaged an international consultant to evaluate the 273 fees and rates faced by oil prospecting companies in the country to align them with international best practices.

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Those sentiments were reiterated by the Minister of State Petroleum Resources (Gas), Ekperikpe Ekpo who added that the huge potentials of the country in the sector must be fully utilised for the good of the country.

According to him, the huge assets of the country in the regard, included proven gas reserves of over 200 trillion cubic feet, which he said efforts were on to exploit this for the common good.

The Eagle reports that the conference, running under the theme: “Accelerating Energy Progress Through Investment, Global Partnerships and Innovation”, attracted key personnels and operators from the country’s oil and gas sector.