Heineken Lokpobiri, the Minister of State for Petroleum Resources (Oil), has voiced concerns on the supply of crude oil needed to run the newly opened refineries in Nigeria.
Speaking at the ministry’s 2024 sector retreat in Abuja with the subject “Building Synergy for Enhanced Development in the Oil and Gas Sector,” Lokpobiri voiced his concerns for the third time in four months.
“Our primary goal is to increase production. Once we achieve this, we will be able to meet our revenue target and fulfill our obligations both upstream and downstream,” stated Lokpobiri.
He emphasized how embarrassing it could be to finish refining facilities without obtaining enough feedstock.
He went on, “One of the challenges I fear is that once we finish fixing our refineries, we won’t be able to get feed stocks.”
The importance of this issue for Nigeria’s oil and gas industry is demonstrated by the fact that the minister has raised it in public three times in the past four months.
After a retreat at the Presidential Villa, he first brought up the matter in November 2023 while answering questions from State House correspondents.
During the recently concluded seventh Nigeria International Energy Summit in Abuja in February, Lokpobiri again reaffirmed the refineries’ substantial needs for crude oil.
He said, “The government-owned refineries would consume about 450,000 barrels of crude oil per day, while the Dangote refinery alone would require up to 650,000 barrels.”
Lokpobiri also emphasized the need for change by pointing out Nigeria’s diminishing investments in the industry during the previous five years. “If you talk about investment to reserves ratio, we are the lowest in the world,” he declared. “There is a problem with what we are doing.”
In addition to highlighting the significance of having a competitive regulatory and fiscal framework, Lokpobiri also emphasized the petroleum sector’s capacity to help solve the nation’s problems.
“We are addressing the issue of pipeline vandalism and insecurity to see how we can sustainably attract investment, not just upstream but also midstream and downstream,” he said.
According to Lokpobiri, Nigeria shouldn’t be experiencing energy poverty given its enormous confirmed gas reserves, which surpass 208 trillion cubic feet (TCf).