Nigeria’s Minister of State for Petroleum Resources, Heineken Lokpobiri has said that going forward only those with proven capacity will be prioritized in future bid rounds. Lokpobiri said this during the 2023 Annual Dinner of the Independent Petroleum Producers Group (IPPG), held in Lagos.
ThisDay reports that the Honorable Minister said that in his capacity as Minister, he is ready to liberalize the sector, so business can be done effectively and quickly.
According to him, in times past, it was normal practice to award licenses to those who could not develop the asset and such awards ended up as souvenirs.
He said:
- “We want to see how we can liberalize the entire process so that businesses can easily be going on. Part of what we have discovered is that we have so many people who have licenses and they have no capacity to do exploration. So, it ends up as souvenirs in their cupboard.
- “Going forward, the members of IPPG, please, get ready. For any other bid round, I want to assure you that you, the men, will be the ones to be considered.
- “In fact, to me, if I give anybody any license, and the person wears some nice suit and starts roaming around the world looking for investment, I have caused him more pain. So, I believe that those of you who have already proven capacity should be the people that we should prioritize in terms of future bid rounds.”
By 2024, we will produce up to 2 million barrels
While also speaking on the country’s crude oil production, Lokpobiri mentioned that the Organization of Petroleum Exporting Countries (OPEC) does not consider condensate production alongside crude oil production, so, the country can fund its budget on 300,000 barrels of condensate production.
He said:
- “At the end of the day, because OPEC does not consider condensates, we have OPEC quota of 1.5 million barrels. With condensate of about 300, 000 barrels, we can fund our budget for the year 2024.
- “But it is my conviction that we can do a lot more. Our problem is not capacity; our problem is other factors, from security to the integrity of our facilities. And so, by the time we start addressing some of these concerns, I believe that by 2024, we will be able to produce at least two million barrels.”
Lokpobiri expressed a desire for a scenario where Nigeria could potentially produce around 2.5 million barrels of oil per day.
This production capacity would ideally prompt OPEC (Organization of the Petroleum Exporting Countries) to intervene, advising a reduction in production due to oversupply.
In such a situation, Lokpobiri envisions the ability to boast about the surplus, indicating the capability to sell a portion to the global market while reserving the remaining quantity for internal refining processes.
Meanwhile, President Tinubu’s Special Adviser on Energy, Ms. Olu Verheijen who was also present at the event said her office has since started work on key areas of reform to spur the growth of the energy sector, which would also positively impact the livelihood of the average Nigerian and small businesses.
She said:
- “Recently, the president approved the Import Duty Waiver aimed at increasing the utilization and supply of gas in the domestic market. This waiver covers the importation of all equipment related to Compressed Natural Gas (CNG) and Liquefied Petroleum Gas (LPG), as well as machinery, equipment and spare parts into the Nigerian market for the utilization of Nigerian gas.”
