FG set to revoke licenses of firms lacking exploration capacity

Thursday, August 22, 2024 -The Federal Government has warned firms and individuals with oil block licenses who have failed to secure investment or undertake exploration activities that their licenses will be revoked if they do not comply.

The State Minister of Oil, Heineken Lokpobiri, said this in a statement on Wednesday, August 21, in Abuja while speaking on the challenges faced in the oil and gas sector.

Lokpobiri stated that out of the 60 licenses issued in the recent oil block bidding, only 10 companies have successfully attracted investment and started exploration.

He emphasized that retaining licenses for companies that merely hold them as "souvenirs" without securing the necessary funding for exploration is pointless.

He said: "I’ve always said if the upstream doesn’t succeed, the midstream and downstream will fail. And we have people who are holding licenses as souvenirs. If those people do not use the licenses given to them to be able to raise funds and then extract the crude oil from the soil, we better take it back from them.  

"I see a lot of them everywhere in the world. They wear nice suits and speak grammar.

"They pay signature bonuses to the government, but they have no money. They have no wherewithal to be able to raise funds and do the real exploration.  

"Those who benefited from the last bid rounds are almost 60. But today we have less than 10 of them who have been able to bring oil from the soil.

"Will you disagree with me that we should continue to leave these licenses with them when the licenses are not adding any value both to them and to Nigeria as a country?"

Lokpobiri added that he doesn't mind making "enemies" by "ensuring that we revoke them and give to people who have the capacity."