The Federal Government has instructed International Oil Companies (IOCs) to reactivate all dormant oil wells. This directive is part of its renewed drive to boost production and meet national targets.
Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, issued the charge during the Nigeria Oil and Gas Conference and Exhibition (NOG 2025) held in Abuja.
“The era of dormant oil wells is over,” Lokpobiri said. “Every idle well must resume operation to meet our output goals.”
Investor Confidence Returns, Rig Count Hits Decade High
According to the minister, Nigeria’s oil and gas sector is witnessing a revival. Rig activity has reached its highest point in over ten years. Currently, there are over 40 active rigs, and the government aims to hit 50 by the end of 2025.
He attributed this resurgence to clearer policies, well-managed IOC divestments, and President Tinubu’s pragmatic leadership.
“For nearly a decade—before 2023—we saw no new upstream investment,” Lokpobiri explained. “Today, confidence is back and investments are flowing.”
Notably, he emphasized that the approval of IOC divestments helped restore investor trust. Before the reforms, international oil majors hesitated to invest due to uncertainty around exit processes.
“A U.S. investor once asked me, ‘Why should I invest if I can’t divest peacefully?’ Now that divestments are approved, production has grown by over 300,000 barrels per day,” he noted.
FG Rejects NNPC’s Conservative Outlook, Sets 2025 Target
While NNPC Limited projects reaching 2 million barrels per day (bpd) by 2027, the minister rejected that timeline. Instead, he insisted that the country must meet the 2025 budget benchmark of 2.06 million bpd.
“I told NNPC clearly—I don’t agree with that projection. The President’s expectations are urgent and unambiguous,” he stated.
To achieve this, the Federal Government has ordered a review of all Financial and Technical Services Agreements (FTSAs). These partnerships are vital for increasing production capacity. Lokpobiri said the reviews must apply to both NNPC and the IOCs.
“FTSAs aren’t just for NNPC. We need every player involved in upscaling output,” he added.
Oilfield Giants Invited Back, Local Content Rules Reassessed
In a direct appeal, Lokpobiri called on top global oilfield service firms, including Schlumberger and Saipem, to return to Nigeria. He assured them that the operating environment has been restructured for fairness and efficiency.
“NOG 2025 is the right platform to say it: the big boys should come back. Nigeria is open for business,” he declared.
However, the minister acknowledged past issues with Nigeria’s Local Content Policy. According to him, the policy was misused in some instances. Some individuals created shell companies only to subcontract jobs to real service firms.
“Local content became local substitution. That’s not what the policy was designed for,” he explained. “We’re working to ensure fair competition—not middlemen profiteering off real contractors.”
NNPC Management Must Deliver, Says Lokpobiri
While praising the newly appointed NNPC leadership, Lokpobiri urged the team to match high expectations with results. He reminded them that Nigerians cannot wait until 2027 to see real output gains.
“When this NNPC team was announced, people said, ‘If this group can’t fix it, no one can.’ But high expectations come with pressure. We must deliver results now.”
He concluded by reaffirming the Tinubu administration’s resolve to maximize oil production and leverage every available well.
“The president has directed a full FTSA review. Idle wells must be revived. That’s how we’ll meet our production target,” Lokpobiri said.
