Nigeria Calls for Renewed Commitment from IOCs to Revive Oil Sector

The Federal Government has urged International Oil Companies (IOCs) operating in Nigeria to increase their investments and actively support efforts to rejuvenate the nation’s oil and gas industry.

The government emphasized that recent policy reforms and fiscal incentives have created a favorable climate for long-term investment.

This appeal was delivered by the Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, Ph.D., during the Cross Industry Group (CIG) Meeting in Florence, Italy—a strategic forum hosted by IOCs with operations in Nigeria.

According to a statement from his media aide, Nneamaka Okafor, the Minister highlighted the administration’s commitment to creating a stable and investment-friendly environment, pointing to the recently signed Executive Order designed to attract deepwater investments as a key example.

“The government has implemented the necessary policy frameworks to support growth in the sector. It is now the responsibility of operators to respond with real investment decisions that will enhance production and drive sustainability,” Lokpobiri said.

He noted that challenges related to Engineering, Procurement, and Construction (EPC) processes must be addressed collaboratively, and that tangible investment commitments from IOCs would encourage greater engagement from EPC contractors.

The Minister also underscored the importance of supporting Nigeria’s growing refining capacity, emphasizing that new and upcoming refineries will require a consistent supply of crude oil to operate effectively. He noted that boosting domestic production would be vital for meeting both local demand and international obligations.

To further stimulate production, the government plans to enforce provisions within the Petroleum Industry Act (PIA), particularly the “drill or drop” policy, which mandates the development of oil assets within a defined timeframe.

“We cannot allow vital assets to remain dormant for decades. If operators are unable or unwilling to develop them, we will reallocate those assets to companies ready to invest and produce,” he stated. Lokpobiri encouraged strategies such as asset sharing, farm-outs, and utilizing nearby infrastructure to reduce costs and speed up development timelines.

In response, the Chairman of the Oil Producers Trade Section (OPTS), Mr. Osagie Osunbor, expressed appreciation for the Minister’s direct engagement and acknowledged the government’s efforts to encourage investment and collaboration in the sector.

“The dialogue with the Minister has been constructive. We recognize the government’s drive and are committed to contributing to the sector’s growth through increased production and operational efficiency,” Osunbor said.

The government reaffirmed its goal of building a dynamic and resilient oil and gas sector and called on industry players to match this ambition by making meaningful investments that support national energy security and economic development.