FG Demands Accountability And Performance From Oil Operators
The Federal Government has issued a strong call to action to oil and gas operators across the country, demanding tangible results in production and value creation in exchange for the extensive support already provided by the Government.
The Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri Ph.D. stated this while speaking at the just concluded Nigeria Oil and Gas Energy Week, emphasizing that operators must begin to reflect the level of investment and support in their performance metrics. The Minister made it clear that existing frameworks such as Joint Ventures (JVs) and Financial/Technical Services Agreements (FTSAs) were not created as shields for underperformance, but rather as instruments of progress.
“Let’s be clear: Joint Ventures and Financial/Technical Services Agreements are not weapons to hold the sector hostage,” the Minister stated. “They are frameworks built on trust that you, the operator, will act in the nation’s best interest. If you cannot, it’s time to step aside or step up through partnership.”
According to Sen. Lokpobiri, the Federal Government has gone above and beyond to provide the necessary enablers for oil companies to function optimally, including fiscal incentives, policy stability, and regulatory support. However, the results on the ground, particularly in terms of oil production and asset utilization, have fallen short of expectations.
“This is not business as usual,” the Minister declared. “Operators must wake up to the responsibility they hold. The era of dormant fields and underperforming assets must give way to action.”
A release by Nneamaka Okafor, Media and Communication aide to the Minister, says, in line with this renewed focus, President Bola Ahmed Tinubu has directed the Board of the NNPC Ltd to undertake a comprehensive review of all existing operatorship arrangements. This move is aimed at ensuring that all partnerships within the sector are aligned with the national vision of resource development and economic transformation.
The Minister further charged operators to take immediate steps to unlock value from idle assets. “Unlock dormant and untapped assets. Re-enter shut-in wells. Convert dormant licenses into measurable output,” he urged.
The NNPCL GCEO put to rest this when he presented a statistical graph, which showed the cash call indices, indicating that NNPCL, the national oil company, has kept to its own end of the bargain but that has not been so with some operators. The Minister therefore, called on the operators to justify Government’s investment in their various partnership.
With this directive, the Government is sending a clear and uncompromising message to operators: deliver measurable value or risk a re-evaluation of your place in Nigeria’s energy future.