The Federal Government has issued a stern warning to firms and individuals holding oil block licenses, stating that their licenses will be revoked if they fail to secure investments or undertake exploration activities.
State Minister of Oil, Heineken Lokpobiri, made this clear in a statement on Wednesday, August 21, 2024 in Abuja, as he addressed the ongoing challenges within the oil and gas sector.
Lokpobiri revealed that of the 60 licenses awarded in the latest oil block bidding round, only 10 companies have successfully attracted investments and commenced exploration.
He criticized those who hold licenses without pursuing the necessary funding and exploration, labeling it as pointless.
“I’ve always said if the upstream doesn’t succeed, the midstream and downstream will fail,” Lokpobiri stated. “We have people holding licenses as souvenirs. If they don’t use these licenses to raise funds and extract oil, we might as well take them back.”
He further criticized license holders who pay signature bonuses but lack the resources to carry out real exploration, stating, “They have no wherewithal to be able to raise funds and do the real exploration.”
Out of nearly 60 license recipients from the last bid rounds, fewer than 10 have successfully extracted oil, prompting Lokpobiri to question the value of leaving licenses with non-performing holders.
“I don’t mind making enemies by ensuring that we revoke them and give them to people who have the capacity,” he added, underscoring the government’s commitment to ensuring that licenses add value to both the holders and Nigeria.
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