The Nigerian government is considering the possibility of revoking a significant number of the marginal field licenses that were awarded in the 2021 round due to their non-performance. Heineken Lokpobiri, the Minister of State, Petroleum Resources (Oil), issued a stern warning regarding this issue, expressing deep concerns over the lack of progress from the recipients of these licenses.
While the acquisition process for these marginal fields was completed nearly 30 months ago, there has been little to no substantial development or discovery of oil from the successful bidders. An audio recording of Minister Lokpobiri’s comments, which were made during the Nigeria Economic Summit (NES) in Abuja, was shared with journalists by the ministry. These remarks were part of the energy roundtable discussion during the two-day event.
Minister Lokpobiri strongly criticized the majority of the license awardees, asserting that they appear to be treating the licenses as mere “souvenirs.” He emphasized that both the potential marginal field operators and the government were not benefiting from this inaction. According to his statement, out of the more than 100 licenses granted in 2021, only three are currently operational, a situation he deemed unacceptable, especially given Nigeria’s continuous underproduction of its Organization of Petroleum Exporting Countries (OPEC) oil allocation.
The minister stressed the need for clear and enforced deadlines for investments to materialize, marking a clear departure from past practices. He cited the previous allocation of marginal fields where, despite numerous licenses being awarded, only a very small fraction of them are currently in operation, which raises significant concerns about the efficiency and effectiveness of the program.
The potential revocation of these licenses underscores the government’s commitment to ensuring that Nigeria maximizes the utilization of its natural resources and fulfills its production obligations within the OPEC framework.
