FG Sends Strong Warning to Oil Firms with Undeveloped Blocks
- The federal government has warned it may revoke licences of undeveloped oil blocks
- The Minister of State for Petroleum Resources said oil licences are not status symbols
- The government stressed that licence holders whose assets are revoked will not receive refunds of fees paid
Oluwatobi Odeyinka is a business editor at Legit.ng, covering energy, the money market, technology and macroeconomic trends in Nigeria.
The federal government has warned that it may withdraw the licences of oil blocks that have remained undeveloped for years, as it moves to tighten enforcement of timelines in the country’s upstream oil sector.
The Minister of State for Petroleum Resources, Heineken Lokpobiri, issued the warning on Wednesday during the Licensing Round Pre-bid Conference held in Lagos, as reported by PUNCH.
Source: UGC
No companies will be allowed to sit on oil licences
Lokpobiri said oil licences are not meant to be held as prestige assets, stressing that the government will no longer tolerate situations where companies sit on oil blocks without developing them.
According to him, some licence holders have kept oil blocks for as long as 20 years without meaningful development, a practice he said must come to an end.
The minister also made it clear that any licence revoked due to non-performance would not attract a refund of bid fees or signature bonuses already paid by investors.
He added that post-bid adjustments would not be allowed under the current licensing round, warning prospective bidders to strictly comply with the laid-down guidelines.
Lokpobiri noted that Nigeria remains attractive to investors because it is a mature oil-producing country, despite global energy transitions.
Also speaking at the event, the Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Oritsemeyiwa Eyesan, said many of the oil blocks currently on offer were recovered through the implementation of the Petroleum Industry Act (PIA).
Nigeria is Africa's energy investment destination
Eyesan described Nigeria as a preferred investment destination in Africa and highlighted the growing participation of indigenous companies in the oil and gas sector.
She also emphasised the role of Nigerian banks in supporting the industry, advising investors to work closely with local financial institutions during the licensing process.
According to the commission, a total of 50 oil blocks are available in the current bid round, covering onshore, shallow water and deep offshore locations across different basins in the country.
Source: Twitter
NUPRC revokes licence of Oritsemeyin rig after safety breach
Legit.ng earlier reported that the NUPRC revoked the operating licence of the Oritsemeyin Rig and ordered its immediate shutdown after the conclusion of ongoing well operations. The decision was communicated in a letter dated September 11, 2025, to Selective Marine Services Limited (SMSL), the operator of the rig.
The commission explained that during the drilling of the UDIBE-2 wellbore, the rig experienced a kick — an unexpected influx of formation fluids such as oil, gas, or water into the wellbore. If poorly managed, it posed grave risks to workers, equipment, and the environment.
Meanwhile, the commission is currently holding a licensing round for 50 oil and gas blocks. At the pre-bid conference in Lagos, the new Chief Executive of NUPRC, Oritsemeyiwa Eyesan, announced a reduction in entry costs for the licensing round, including a revision of the signature bonus and other pre–first oil fees, as part of ongoing reforms to attract investment into Nigeria’s upstream sector.
Proofreading by James Ojo, copy editor at Legit.ng.
Source: Legit.ng
