The Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, has issued a stern warning to cancel licenses for marginal oil fields that have failed to produce petroleum. Speaking at the recently concluded Nigerian Economic Summit Group in Abuja, Lokpobiri emphasized that the underutilization of marginal fields is contributing to Nigeria’s low crude oil production.
Lokpobiri revealed that out of over 100 licenses granted for marginal oil fields, only three have been actively producing oil. He pointed out that the three-year period granted to these license holders has expired, and he is prepared to take action.
He stated, “If you are given the field, it is not a souvenir to keep. It does not add value to you or our country. If today, the marginal fields were producing, we would be able to get sufficient feedstock for our modular refineries and increase our total production quota.”
Lokpobiri expressed concern that many are interested in owning these fields but lack the financial and technical capacity to effectively utilize the assets. He stressed the importance of adhering to the terms of the acquisition agreements, which many have already breached.
He concluded by emphasizing the need to boost production in the upstream sector of the oil industry, as this is crucial for the success of both the mainstream and downstream sectors.
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