FG to Seize Licenses Holder of Firms Lacking Exploration Activities

The Nigerian Federal Government has issued a stern warning to oil block license holders who have failed to secure investment or commence exploration activities.

According to State Minister of Oil, Heineken Lokpobiri, the government is prepared to revoke licenses from firms that are not actively developing their allocated oil blocks.

Speaking in Abuja, Lokpobiri highlighted the challenges faced in the oil and gas sector. Out of the 60 licenses issued during the recent oil block bidding, only 10 companies have successfully attracted investment and started exploration.

The minister emphasized the futility of holding licenses without the necessary funding for exploration, stating, "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." Lokpobiri criticized those who merely pay signature bonuses to the government but lack the financial capability to undertake real exploration. "They wear nice suits and speak grammar. They have no money.

They have no wherewithal to be able to raise funds and do the real exploration," he remarked.

The minister made it clear that retaining licenses for companies that do not add value to Nigeria is pointless. "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?" he questioned.

Lokpobiri also expressed his willingness to make "enemies" by ensuring that inactive licenses are revoked and reallocated to more capable entities.

This move shows the government's commitment to ensuring active development and utilization of the country's oil resources, emphasizing accountability and efficiency in the sector.

The announcement has sparked various reactions from the public.

One commenter suggested that the government should also consider revoking undeveloped lands in the Federal Capital Territory (FCT) owned by land speculators.

Another hailed the decision as good news, advocating for broader participation in the sector.