‘Capital is blind, it follows best return” —Petroleum Minister Lokpobiri
...Says no longer free lunch for license holders, drill, or drop
By; Goodluck E. Adubazi, Abuja.
At the 31st Nigerian Economic Summit Group (NESG) Design Workshop held in Abuja on Tuesday, Minister of State for Petroleum Resources, Honourable Heineken Lokpobiri, pulled no punches as he addressed the state of Nigeria’s oil and gas sector.
Speaking under the theme “Building Productive Sectors: Investing in Oil and Gas”, Lokpobiri tackled everything from investor trust to marginal field licenses, with a clear message:
“If you don’t have the money or the capacity, drop it.”
Lokpobiri spoke candidly about beneficiaries of marginal oil field licenses, making it clear that only those who meet the legal and financial thresholds should proceed.
“Even if you blackmail me, history will remember. I’m not here to extend favors that can’t be executed.”
“The Petroleum Industry Act (PIA) is clear, drill or drop. We’re no longer in the business of holding fields hostage.”
“Capital Is Available, But It’s Not Emotional”
The Minister addressed the global investment climate, noting that while capital is plentiful, it’s not loyal, just logical.
“Capital is blind. It goes where the returns are highest. We must create the right environment to attract it, not chase it away with uncertainty.”
IOCs Are Backing Nigeria Again, Quietly
In a rare moment of optimism, Lokpobiri shared that International Oil Companies (IOCs) are responding positively to recent government reforms, even if it hasn’t made headlines.
“Shell, Chevron, ExxonMobil — they’re all investing again. One IOC told me they’ve never had it this good in that region of Nigeria.”
He noted that divestments that were stalled for over two years have finally been approved under the current administration, citing this as proof of Nigeria’s renewed investor confidence.
The Minister revealed that over $18.2 billion worth of thermal power plant projects involving 28 companies are in the pipeline, pointing to a quiet but powerful transformation underway in the energy sector.
“We’re not waiting around. Nigeria is ready for business, and the world is noticing.”
While praising recent reforms, Lokpobiri stressed that the private sector must also step up.
“The government is doing its part, but we need private players to take responsibility too. The sector is now competitively regulated, there are opportunities, but you must be ready.”
Domestic Supply vs. Export: Finding the Balance
On Nigeria’s domestic refining obligations, the Minister reiterated the need to balance local supply needs with global trade realities.
“We have obligations to our refiners, yes. But the PIA is clear, it must be a willing seller, willing buyer. We can’t keep changing the rules mid-game.”
“Nigeria Is Open for Business, Are You Ready?”
Wrapping up, Lokpobiri thanked the audience for engaging with critical oil and gas sector issues, leaving them with a final challenge:
“Nigeria is open for business. Are you ready to be part of it — or just part of the noise?”The Minister concluded.
