The federal government has successfully resolved all contentious issues surrounding the $1.3 billion Oil Mining License (OML) 245 oil field scandal, marking a pivotal moment for Nigeria’s energy sector. Heineken Lokpobiri, Minister of State for Petroleum Resources, confirmed the breakthrough following a strategic meeting involving the Attorney General of the Federation, NNPC officials, and other stakeholders.
Speaking at the 23rd annual NOG Energy Week in Abuja, Lokpobiri expressed optimism about the economic prospects stemming from the resolution. “Nigeria has overcome the obstacles related to OPL 245; this will pave the way for significant investments,” he affirmed, underscoring the administration’s proactive stance in addressing long standing issues.
Highlighting the government’s approach, Lokpobiri contrasted it with past administrations, emphasizing ongoing efforts to resolve disputes promptly and transparently. He stressed that resolving the OPL 245 issue could attract billions of dollars in investments, potentially transforming Nigeria’s oil industry landscape.
“The block has been a point of contention for 28 years,” Lokpobiri lamented, acknowledging the prolonged delays in unlocking its economic potential.
Lokpobiri emphasized the imperative of global competitiveness, citing recent benchmarks that positioned Nigeria favorably compared to other nations. This improved standing, he noted, has already enticed the return of several global companies to Nigeria, encouraged by the government’s commitment to creating a conducive business environment.
In a move aimed at bolstering domestic production, Lokpobiri issued a directive to indigenous oil firms to submit plans for increasing their crude output. With 28 Independent Petroleum Producers Group (IPPG) members currently producing 5,000 barrels per day each, he urged them to double their output through strategic investments.
“The future of Nigeria’s energy security hinges on the IPPG’s ability to ramp up production,” Lokpobiri asserted, highlighting the pivotal role of domestic producers in meeting national energy demands and boosting exports.
Furthermore, Lokpobiri challenged the Nigerian National Petroleum Company (NNPC) Limited to implement measures aimed at significantly reducing the country’s high crude oil production costs. Nigeria’s current production costs are among the highest globally, with Lokpobiri setting a target of less than $20 per barrel, aligning with global benchmarks.
“Why does Saudi Arabia produce at less than $6 per barrel? We must eliminate unnecessary costs and streamline operations to enhance our global competitiveness,” Lokpobiri emphasized, echoing his mandate from President Bola Tinubu to strengthen Nigeria’s economy through increased production and exports.
As Nigeria navigates these transformative changes in its energy sector, Lokpobiri remains optimistic that strategic reforms will position the country as a leading player in the global oil market, fostering economic growth and stability.
