Wednesday, September 17, 2025
Home Oil & Gas FG CALLS ON IOCs IN NIGERIA TO RAMP UP INVESTMENT .

FG CALLS ON IOCs IN NIGERIA TO RAMP UP INVESTMENT .

The Federal Government has called on International Oil Companies (IOCs) operating in Nigeria to ramp up investments in the country’s oil and gas sector, emphasizing that the administration of President Bola Ahmed Tinubu has provided every necessary incentive to ensure seamless and profitable operations.
In a statement signed by the  SA Media and Communication to the Minister of  petroleum ,Nneamaka Okafor reveals that, the Minister of State for Petroleum Resources (Oil), Sen. Heineken Lokpobiri Ph.D, made this statement at the Cross Industry Group (CIG) Meeting held in Florence, Italy, organized by IOCs operating in Nigeria. The meeting focused on challenges, expectations, and strategies to enhance the sector’s contributions to domestic energy needs and regional expansion across Sub-Saharan Africa.
Speaking at the event, Sen. Lokpobiri noted that while IOCs have pointed to Engineering, Procurement, and Construction (EPC) contractors as a challenge, EPCs will only commit when they see strong investment decisions from industry players.
“The Government has done its part by providing the requisite and investment-friendly fiscal policies, including the President’s Executive Order incentivizing deepwater investments. Now, the ball is in the court of the IOCs and other operators to make strategic investment decisions that will drive increased production and sustainability in the sector,” the Minister stated.
He further emphasized the need for IOCs to support local refining efforts, noting that more refineries are coming on stream and will require a steady supply of crude oil. To make this easy and possible, he stressed that ramping up production will enable Nigeria to meet both local and international obligations.
In line with the Federal Government’s drive to boost production, Sen. Lokpobiri reiterated that the Federal Government will begin implementing the “drill or drop” provisions of the Petroleum Industry Act (PIA) where necessary.
“We cannot continue to have assets sitting idle for 20 to 30 years without development. If you are not utilizing an asset and it remains underdeveloped for decades, it neither adds value to your books nor to us as a country. We encourage industry players to explore collaborative measures such as shared resources for contiguous assets, farm-outs, and the release of underutilized assets to operators ready to invest in production. Otherwise, like any responsible government, we will take back these assets and allocate them to those willing to go to work,” he said.
The Minister also urged operators to consider farm-out agreements where assets are close to existing infrastructure, rather than incurring high costs on new Floating Production Storage and Offloading (FPSO) units.
The Chairman of the Oil Producers Trade Section (OPTS), Mr. Osagie Osunbor, commended the Minister for his direct engagement with industry players and for the Federal Government’s continued efforts in advancing the sector.
“We appreciate the government’s commitment to creating a conducive environment for investment. The Minister’s engagement has provided critical insights and has also challenged us as industry players to step up efforts to increase production,” Osunbor stated.
The Federal Government  says it’s remains committed to ensuring a thriving oil and gas industry and expects operators to match its commitment by making tangible investment decisions that will drive growth, sustainability, and national energy security.
RELATED ARTICLES

LOKPOBIRI HIGHLIGHTS REFORMS, INCENTIVES IN DEEPWATER SECTOR.

  Nigeria has renewed its appeal to global Engineering, Procurement, and Construction (EPC) companies, assuring them of a transformed investment environment backed by bold reforms...

NIGERIA COMMITTED TO ATTRACTING RETURNING INVESTORS WITH GLOBAL-LEVEL INCENTIVES – LOKPOBIR.I

  Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri,  says Nigeria is ready to offer global-standard incentives to attract international investors back into...

NIGERIA ON TRACK TO HIT 2.5MBPD OIL OUTPUT — FG.

  The Federal Government, through the Nigerian Upstream Petroleum Regulatory Commission, has declared that the country is firmly on course to ramp up crude oil...

Most Popular

INSURANCE LITERACY DRIVE: NAICOM, SDGs SYNERGY INITIATIVE MOVE TO PROMOTE INSURANCE LITERACY.

  The National Insurance Commission (NAICOM) and the Sustainable Development Goals (SDGs) Synergy Initiative are set to deepen collaboration aimed at strengthening youth participation in...

$134M AGRIC PROGRAMME NAIDA REJECTS ALLEGATIONS OF MISMANAGEMENT

  The Nigeria Agro Input Dealers Association, NAIDA, has dismissed reports alleging fraud in the African Development Bank–funded $134 million agricultural programme, NAGS-AP. In a statement,...

FG MOVES TO REVITALIZE SILOS CONCESSION PROGRAMME TO BOOST FOOD SECURITY

  The Federal Government says it is set to revitalize the Silos Concession Programme as part of efforts to curb post-harvest losses, strengthen food storage...

INDIAN BUSINESSMAN, THREE OTHERS ARRESTED OVER N3.9BN TRAMADOL AT LAGOS AIRPORT …AS NDLEA UNCOVERS SKUCHIES FACTORY, NABS COUPLE WITH 19KG DRUGS IN ANAMBRA,...

The National Drug Law Enforcement Agency (NDLEA) has arrested an Indian businessman, Gupta Ravi Kumar, and three Nigerian accomplices over the importation of 2,248,000 pills...

Recent Comments