Niger Delta
Nigeria to tackle oil theft using Drone technology_ Lokpobiri
Senator Heineken Lokpobiri, the Minister of State for Petroleum Resources, announced on Saturday that the federal government plans to implement new technologies, such as drones and satellite surveillance, to combat rampant oil theft in the Niger Delta. He emphasized the need for increased commitment from industry stakeholders to support Nigeria’s goal of raising crude oil production by over one million barrels per day within the next two years. Additionally, he stated that Nigeria is prepared to host the headquarters of the $5 billion Africa Energy Bank (AEB), following its successful bid in July 2024.
Speaking at a meeting of the Oil Producers Trade Section (OPTS) in Istanbul, Turkey, Lokpobiri reiterated that companies awarded oil field bids must either begin exploration or relinquish the fields. His spokesperson, Nneamaka Okafor, noted that these comments are part of a strategic plan to address challenges and opportunities in the petroleum sector.
Highlighting the oil sector’s crucial role in Nigeria’s economy, providing around 85 percent of government revenue, Lokpobiri acknowledged ongoing security challenges but reported efforts to safeguard the country’s oil infrastructure through enhanced security measures and military support, especially from the Nigerian Navy and the Joint Task Force (JTF). He stressed the importance of community engagement and partnerships to foster local ownership of key assets.
Lokpobiri outlined Nigeria’s dual approach to energy transition, focusing on maximizing crude oil production while also moving toward cleaner energy solutions. He highlighted the government’s urgency to reduce costs and streamline operations, particularly in upstream activities, to stay competitive globally.
The minister detailed various reforms and incentives aimed at revitalizing the oil and gas sector, including modifications to Value Added Tax (VAT) and tax incentives for deep offshore production. He also mentioned plans to launch bidding rounds for 31 oil and gas blocks, emphasizing their potential to enhance reserves and stimulate economic growth, with reduced barriers to entry for investors.
Lokpobiri reiterated that the government is committed to the Nigerian Oil and Gas Industry Content Development (NOGICD) Act, which encourages local content, and emphasized the necessity of utilizing or relinquishing valuable oil fields.
In a separate statement, he confirmed Nigeria’s readiness to host the AEB headquarters, with preparations underway for its operational launch in the first quarter of 2025. During the 46th Ordinary Session of the Ministerial Council of the African Petroleum Producers’ Organisation (APPO) in Yaoundé, Cameroon, Lokpobiri expressed Nigeria’s eagerness to contribute to Africa’s energy sector by bridging financing gaps and enhancing infrastructure. He noted Nigeria’s $69.1 million equity funding commitment to the bank, which underscores its leadership in supporting energy initiatives across the continent.
He urged APPO member countries to expedite their financial contributions to the AEB, emphasizing that collaboration could lead to significant advancements in the energy sector and help establish Africa as an energy hub.
