Nigeria Deploys Drone Surveillance To Curb Oil Theft In Niger Delta, Says Lokpobiri

The Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, on Saturday said the federal government would deploy new technologies like drones and satellite surveillance to halt massive oil theft in the Niger Delta.

Lokpobiri also called for greater commitment from industry players to Nigeria’s ambitious plan to increase crude oil production by over one million barrels per day within the next 24 months, saying the federal government was ready to host the headquarters of the $5 billion Africa Energy Bank (AEB), following the country’s successful bid in July 2024.

Addressing a gathering of the Oil Producers Trade Section (OPTS), a group of oil firms operating in Nigeria, at the Cross Industry Group (CIG) meeting in Istanbul, Turkey, at the weekend, Lokpobiri also restated that oil field bid winners must explore or relinquish them.

The minister’s spokesperson, Nneamaka Okafor, said in a statement that Lokpobiri’s remarks were part of a strategic plan to navigate the challenges and opportunities in Nigeria’s petroleum industry presented to the producers.

Underscoring the sector’s central role in Nigeria’s economy, which the minister said provides around 85 per cent of government revenue as well as serves as a vital source of foreign exchange, the minister said there was the need for the oil sector to remain resilient.

He acknowledged the persistent security challenges in the Niger Delta but reported ongoing efforts to protect Nigeria’s oil infrastructure through enhanced security measures.

Aside from engaging communities and encouraging partnerships to foster local ownership of critical assets, Lokpobiri stated that other efforts include increased military support, particularly from the Nigerian Navy and the Joint Task Force (JTF).

“The government has also implemented technology-driven solutions, including drone and satellite surveillance to enhance the security framework and detect potential threats to the industry,” the minister said.

The minister outlined Nigeria’s dual approach to energy transition to ensure the future of its petroleum industry by focusing on maximising crude oil production and adapting to a cleaner energy transition.

“In the short-term, our focus remains on increasing revenue from crude oil production,” Lokpobiri stated.

He stressed that the government recognised the urgency of cost reduction, highlighting the government’s measures aimed at streamlining operations, particularly upstream activities, to remain competitive in the global market.

The minister said: “The world is moving toward cleaner energy, and Nigeria must be part of that transition. The government has prioritised natural gas as a cleaner alternative while actively exploring renewable energy options to diversify Nigeria’s energy mix.”

He listed part of the bouquet of reforms and incentives to revitalise Nigeria’s oil and gas sector as the Value Added Tax (VAT) modification order 2024 and the tax incentives order for deep offshore oil and gas production.

 Lokpobiri told the gathering that the Nigerian government was focused on reducing contracting costs and timelines and has therefore mandated that the procurement cycle be streamlined to six months.

In addition, he highlighted the government’s commitment to the Nigerian Oil and Gas Industry Content Development (NOGICD) Act, which promotes local content.

The minister emphasised that the government’s recent initiative to launch bid rounds for 31 oil and gas blocks will be a cornerstone of Nigeria’s strategic development.

“Each block has been meticulously selected for its potential to boost reserves and stimulate economic growth. In line with international best practices, barriers to entry have been reduced through signature bonuses to attract a wider range of investors, with strict enforcement of Nigeria’s ‘drill or drop’ policy,” he added.

Lokpobiri called for greater commitment from industry players to support Nigeria’s ambitious plan to increase oil production by over 1 million barrels per day within the next 24 months.

“We cannot afford to hold valuable fields in perpetuity. It’s either you put them to work or relinquish them. The era of renewing licenses without development is over,” he reiterated.

Meanwhile, the federal government has confirmed its readiness to host the headquarters of the $5 billion Africa Energy Bank (AEB), following the country’s successful bid in July 2024.

Preparations are underway to ensure a seamless operational launch of the Bank in the first quarter of 2025, the minister said in a separate statement.

Lokpobiri spoke at the 46th Ordinary Session of the Ministerial Council of the African Petroleum Producers’ Organisation (APPO) held in Yaoundé, Cameroon.

While speaking to the ministers of the 18 APPO member-states, Lokpobiri expressed Nigeria’s enthusiasm for the project, stating: “We are prepared to host the AEB, and our dedication to enhancing funding for Africa’s energy sector remains unwavering.”

One of the bank’s missions is to bridge financing gaps within Africa’s oil and gas industry, facilitating advancements in energy infrastructure across the continent.

Lokpobiri emphasised that the federal government under President Bola Tinubu’s leadership, has taken significant steps to lay the groundwork for the bank’s strategic objectives.

“Our commitment is underscored by Nigeria’s contribution of $69.1 million in equity funding to the bank, which demonstrates our leadership role in supporting critical energy initiatives on the continent,” he noted.

Beyond financial contributions, Nigeria, he said, has also formally signed and ratified the AEB establishment agreement and charter, a development that APPO has praised as a significant leap toward establishing the bank.

With the treaty now in effect, the legal and operational framework is set, paving the way for the AEB’s launch and enabling it to advance its objectives of enhancing energy security on the continent, the minister added.

“I urge all member countries to expedite their subscription and payment of their allocated shares to the AEB. Together, we can achieve remarkable advancements in our energy sectors and establish ourselves as a continental energy hub,” the minister added.

Emmanuel Addeh

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