Nigeria may withdraw oil blocks from operators failing to develop fields, urging oil majors to invest for production growth. Minister Heineken Lokpobiri announced plans to implement “drill or drop” provisions to boost production, targeting 2.06 million barrels per day in 2025. As of February 2025, production was 1.67 million barrels per day.
At a Cross Industry Group meeting in Florence, Italy, Lokpobiri warned of revoking licenses from operators with idle assets, urging them to develop fields or face asset reallocation. He emphasized collaborative approaches like shared resources and farm-outs for underutilized assets. The minister also advised considering farm-out agreements near existing infrastructure to avoid high costs.
The Minister urged operators to increase investment in the oil and gas industry, noting that EPCs will commit when IOCs make strong investment decisions. He highlighted the government’s investment-friendly fiscal policies and executive orders supporting deepwater investments. He also stressed the importance of IOCs supporting local refining efforts, emphasizing that ramping up production will help meet both local and international obligations.
OPTS Chairman Osagie Osunbor praised the Minister’s engagement and the government’s efforts to create a favorable investment environment, encouraging industry players to boost production.
