Industry & Money

FG Forecloses Renewal of Non-operating Oil Licenses

The Federal Government, yesterday, announced an end to the renewal of all non- operating oil licenses.

Minister of State, Petroleum Resources (Oil), Heineken Lokpobiri, stated this on the sidelines of the Offshore Technology Conference (OTC) in Houston, Texas. The event was organised by the Petroleum Technology Association of Nigeria (PETAN) with the theme “Unveiling Nigeria’s Energy Development Strategies: 2024 Licensing Rounds.

The Minister lamented that since he assumed office he has constantly received requests for renewal of non-operating licenses. Going forward, the Minister said such request would no longer be granted.

He said it remained worrisome that some investors after several years of holding licenses have been unable to bring such fields to development. He disclosed that such practice was robbing the country of the needed revenue and jobs required to develop the industry.

He noted that if the upstream sector of the oil industry doesn’t develop, there was no way the midstream and downstream sectors will develop. On the 2024 oil bid licensing round, he reiterated that the exercise was not for unserious investors but only for the ‘big boys’ who have deep pockets and have the technical know-how. “As we flag-off the 2024 oil bid licensing round today, let me warn ahead that this exercise is not for politicians.”

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