Owners of idle oil blocs risk losing them if not activated – FG
The Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, has stated that owners of idle oil blocs risk losing them if efforts are not made to ensure they produce crude oil. Speaking during an inspection of the NNPC/Chevron Nigeria Limited (CNL) Joint Venture EGTL facility in Escravos, Delta State, Lokpobiri said the government’s […]
The Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, has stated that owners of idle oil blocs risk losing them if efforts are not made to ensure they produce crude oil.
Speaking during an inspection of the NNPC/Chevron Nigeria Limited (CNL) Joint Venture EGTL facility in Escravos, Delta State, Lokpobiri said the government’s objective remains to increase production and ensure Nigeria remains attractive for capital expenditure distribution in the global oil and gas market.
The minister in a statement his media aide, Nneamaka Okafor, commended the NNPC/CNL JV for its operational excellence and urged other operators to consider farming out idle assets to investors with access to capital.
He noted that the government is reviewing the activation of the “drill or drop” provision in the Petroleum Industry Act (PIA).
“Since we assumed office, things have changed. Our obligation as a government is to provide an environment that is globally competitive to allow you to expand what you are already doing,” the Minister said.
“My duty is to encourage you to expand your investment in the country. We can only grow sustainable production if we have investments. As a government, ours is to give you the best incentives that will enable sustainable growth. The time has come for us to develop all available blocks. When you are not ready to develop, it’s better to farm out to partners rather than wait 20 or 30 years,” the Minister said.
Chevron Nigeria Limited’s General Manager, NNPC/Chevron Joint Venture, Mr. Segun Kuteyi, expressed optimism about the company’s future in Nigeria and lauded the Minister’s commitment to collaboration.
Chevron’s Chairman/MD, Jim Schwartz, also highlighted the enabling role of the Petroleum Industry Act (PIA) and government support in attracting and sustaining investment.
“When we think about the future, your support and the PIA in sticking with the path of attracting investment is really good for us. We have a lot of resources we still want to develop here that will enable growth in production. After 60 years, we are proud to remain one of the largest supporters in the country,” Mr. Schwartz said.