In a decisive move to meet its OPEC production quota and achieve 2025 budgetary targets, the Federal Government has announced that oil field licenses will no longer be allowed to lie dormant. Oil companies lacking the technical expertise or financial capacity to develop assigned fields risk losing their licenses.
The warning was issued by the Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, during the 2025 Nigeria Oil and Gas Energy Week in Abuja. Themed “Accelerating Energy Progress Through Investment, Global Partnerships and Innovation”, the conference brought together key industry stakeholders.
Lokpobiri stated that Nigeria must derive maximum value from its hydrocarbon resources, stressing that only serious and capable investors will retain access to the country’s upstream assets.
“It is no longer acceptable for critical national resources to remain in the hands of companies that lack the capacity to develop them. Some use licenses merely to secure funding for unrelated ventures. This must stop,” he declared.
He added that dwindling global financing for oil and gas projects has heightened the urgency to optimize existing fields. To streamline operations and improve transparency, the government has engaged an international consultant to review the 273 fees and charges levied on oil companies and align them with global standards.
Meanwhile, Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, highlighted the need to harness Nigeria’s proven gas reserves, estimated at over 200 trillion cubic feet. Through the Decade of Gas initiative, he said the government aims to transform the country’s gas wealth into real socio-economic benefits by boosting industrialisation, expanding power supply, increasing domestic LPG usage, advancing gas-powered transportation, and enhancing gas exports.
Also speaking at the event, Group Chief Executive Officer of NNPC Ltd., Engr. Bashir Bayo Ojulari, revealed a major achievement in the Ajaokuta-Kaduna-Kano (AKK) Gas Pipeline project — the successful crossing of the River Niger, a milestone that raises hopes for the project’s completion by the fourth quarter of 2025.
Ojulari also announced that Nigeria recorded 100% availability of crude oil pipelines throughout June 2025 — a rare achievement made possible through strengthened industry-wide security interventions led by NNPC.
He emphasized the need for sustained investment to maintain and grow production. According to him, NNPC has consistently met its cash-call obligations to Joint Venture operations, crediting this to the financial flexibility provided by the Petroleum Industry Act (PIA).
“The PIA has empowered NNPC Ltd. to take the lead in financing strategic projects and delivering results across the industry,” Ojulari concluded.
