FEDERAL GOVERNMENT URGES IOCS TO RAMP UP INVESTMENT

The Federal Government has called on International Oil Companies, IOCs operating in Nigeria to ramp up investments in the country’s oil and gas sector, emphasizing that the administration of President Bola Tinubu has provided every necessary incentive to ensure seamless and profitable operations.

Senator Heineken Lokpobiri, the Minister of State for Petroleum Resources, Oil, made this statement at the Cross Industry Group, CIG meeting held in Florence, Italy, organized by IOCs operating in Nigeria with focus on challenges, expectations, and strategies to enhance the sector’s contributions to domestic energy needs and regional expansion across Sub-Saharan Africa.

Speaking at the event, Senator Lokpobiri noted that while IOCs have pointed to Engineering, Procurement, and Construction, EPC contractors as a challenge, EPCs will only commit when they see strong investment decisions from industry players.

Mrs. Nneamaka Okafor, the special adviser on Media and Communication to the Minister in a statement said Senator Lokpobiri emphasized the need for IOCs to support local refining efforts, noting that more refineries are coming on stream and will require a steady supply of crude oil, stressing that ramping up production will enable Nigeria to meet both local and international obligations.

In line with the Federal Government’s drive to boost production, the minister reiterated that the Federal Government will begin implementing the drill or drop provisions of the Petroleum Industry Act, PIA where necessary.

The Minister also urged operators to consider farm-out agreements where assets are close to existing infrastructure, rather than incurring high costs on new Floating Production Storage and Offloading, FPSO units.

Mr. Osagie Osunbor, the Chairman of the Oil Producers Trade Section, OPTS, commended the Minister for his direct engagement with industry players and for the Federal Government’s continued efforts in advancing the sector.