The Nigerian government is set to enforce the drill-or-drop provisions of the Petroleum Industry Act, requiring oil firms to commence production within three years or forfeit their assets.
Minister of State for Petroleum Resources, Senator Heineken Lokpobiri, made the announcement at the Cross Industry Group meeting in Florence, Italy. He stressed the need to revitalise dormant wells, saying it was in the nation’s best interest.
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Mr Lokpobiri affirmed that the government had provided incentives to ensure international oil companies operate efficiently. He acknowledged concerns over engineering, procurement, and construction, EPC, contracts but maintained that strong industry commitments were necessary to attract EPC contractors.
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