The federal government has announced its intention to prioritise established petroleum producers in the upcoming bidding round for marginal oil fields.
This move, aimed at boosting efficiency and production in the sector, has sparked mixed reactions from industry stakeholders.
The announcement was made by Heineken Lokpobiri, the minister of state for petroleum, who stated that the government seeks to leverage the experience and technical expertise of existing players to unlock the full potential of Nigeria’s marginal fields.
These fields, typically smaller and less complex than major oil blocks, have long been viewed as a potential driver of economic growth and diversification.
Heineken Lokpobiri, the minister of state for petroleum canvass for Independent Petroleum Producers Group (IPPG) support for Nigeria to achieve a target 2 million bpd.
“We are working around the clock to remove all the bottlenecks for investment; We would prioritise IPPG members who have proven oil assets during the next marginal field bid rounds,” Lokpobiri said at a dinner event late Wednesday.
“By prioritizing established companies, we believe we can ensure faster development of these fields and bring them into production more quickly,” Lokpobiri said. “This will not only generate significant revenue for the government but also create jobs and stimulate local content development in the oil and gas sector.”
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He noted that the federal government is championing the need to have an Africa Energy fund which will have its headquarters in Nigeria.
“I want to assure members of IPPG and all stakeholders of the petroleum sector that they don’t need to see me personally for work to be done; we want things to work effectively well without human effort,” Lokpobiri said.
He added, “IPPG is a critical institution for Nigeria’s energy future”.
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