Peter Uzoho

Minister of State for Petroleum Resources, Senator Heineken Lokpobiri, has declared that the era when oil licenses were treated as souvenirs is over in Nigeria, spotlighting lessons other licensees could learn from Petralon 54.

Lokpobiri stated this when he led a high-power delegation of government officials, regulators, security chiefs, and lenders to the Oil Prospecting Lease (OPL) 54 Dawes Island on an inspection of on-going drilling and operations at the field operated by PETRALON Energy Limited, maintained that the world has now changed the mantra of energy transition to energy mix.

He stated, “Every barrel counts for Nigeria to realize its potentials and meet the quota given to it by the Organisation of Petroleum Exporting Countries (OPEC).” The minister spotlighted Petralon as an example to other licensees, to drill or drop their licenses.

“We are very excited to be here today to see the first well that they have successfully drilled, producing 2,500 barrels of oil daily, and the second well that they are also drilling. I came here specifically to see things for myself and to use this company – Petralon – as an example to other licensees that every barrel counts.”

He added, “This is the type of action that is needed, and every drilling campaign is important towards meeting our OPEC quota and getting value for the oil that Nigeria is endowed with. The good news is that the world has now changed the language. It is now energy mix, no more energy transition. They are now saying the world needs all forms of energy sources to overcome energy poverty.”

Fielding questions from newsmen at the production site, the minister said, “Beyond our regulatory functions, the government takes additional and deliberate measures to support the success of operators in the oil sector, and it is precisely because these measures are in place that we consistently hold operators accountable to deliver on expectations.

“After inspecting operations at the field operated by PETRALON Energy Limited, I noted that we have always maintained that the era of holding licenses as souvenirs is over. Under the ‘drill or drop’ provision of the Petroleum Industry Act (PIA), operators must remain actively engaged in drilling activities or be prepared to relinquish such assets.”

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