The Nigerian government has called on International Oil Companies (IOCs) to ramp up investments in the country’s oil and gas sector, emphasizing that the administration of President Bola Ahmed Tinubu has put in place favorable policies to encourage growth and profitability.
Speaking at the Cross Industry Group (CIG) meeting in Florence, Italy, Minister of State for Petroleum Resources (Oil), Sen. Heineken Lokpobiri, urged oil giants to take advantage of the government’s incentives and make bold investment decisions.
“The government has done its part by providing investment-friendly fiscal policies, including the President’s Executive Order incentivizing deep-water investments,” Lokpobiri stated. “Now, it’s time for IOCs and operators to make strategic moves to boost production and sustainability in the sector.”
He stressed that increasing oil production would not only meet local refining needs but also help Nigeria fulfill its international commitments. The minister also warned that the government would begin enforcing the “drill or drop” provisions of the Petroleum Industry Act (PIA), which mandates companies to either develop their oil assets or risk losing them.
“We cannot continue to have assets sitting idle for decades. If operators are not ready to develop them, the government will reallocate them to those who will,” he added.
The minister further encouraged companies to adopt cost-effective strategies such as farm-out agreements and shared infrastructure for offshore assets instead of investing in expensive Floating Production Storage and Offloading (FPSO) units.
Industry stakeholders, including the Chairman of the Oil Producers Trade Section (OPTS), Osagie Osunbor, praised the government’s engagement with oil companies and its efforts to drive growth in the sector. However, experts say the success of these policies will depend on how swiftly oil firms respond to the call for investment.
