Tinubu Orders reactivation of Dormant Oil Fields

Tinubu Orders Reactivation Of Dormant Oil Fields

The federal government has established a goal of producing 2.1 million barrels of crude oil daily, aiming for approximately N84.67 trillion in crude oil revenue within its budget for 2025. Bola Tinubu has instructed all owners of inactive oil fields nationwide to promptly resume operations to enhance inadequate crude oil production and revenue.

This instruction was communicated to oil and gas stakeholders by the Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, on Tuesday during the ongoing 2025 Nigeria Oil and Gas Energy Week in Abuja. The minister stated that the reactivation of oil assets for increased productivity will not only foster growth within the oil sector but also support investments in capacity development.

Nonetheless, the nation has faced challenges in its oil production, with output remaining around 1.4 million barrels per day. Crude oil and condensate production increased to 1.63 million barrels per day in May, up from 1.61 mbpd in April.

“To ensure continued growth in our oil sector, it is essential that we maintain our investments in capacity development. The recent trend of asset divestments, along with the rise in production levels, highlights an important reality: we possess the domestic capability to expand this industry.“ I stressed this point during the opening of the #NOGEnergyWeek, where I asked the operators a pivotal question: What are the strategies for boosting production?

“This is not merely a rhetorical challenge; it is a call to action that emphasizes our shared responsibility in fulfilling both our domestic energy requirements and our international obligations.

“In my speech, I urged all operators to ensure that every asset under their management is functioning and productive. This is not merely a recommendation but a mandate from President Bola Ahmed Tinubu, and it should be treated with the seriousness and urgency it demands,” said Lokpobiri, the Minister of Petroleum Resources.

“Consequently, I called upon all stakeholders to adopt a new perspective, one that is centered on value and driven by innovation.

“We must undertake something novel, something courageous, something that directly leads to enhanced production.”

With Nigeria having fulfilled both its legal and financial responsibilities to initiate the African Energy Bank (AEB), we are on the brink of enhanced funding opportunities for both investors and operators. “This new source of financing is anticipated to stimulate significant economic growth, not just within the energy sector but across our entire nation,” he stated. As of January 1, 2025, Nigeria’s crude oil reserves are estimated to be 37.28 billion barrels, according to the Nigerian Upstream Petroleum Regulatory Commission (NUPRC). This figure encompasses 31.44 billion barrels of proven and probable (2P) crude oil as well as 5.84 billion barrels of condensate. However, the nation’s oil production has faced challenges due to issues such as pipeline vandalism, theft, and terminal closures.

The obstacles faced have not only resulted in deficiencies in locally targeted production, but Nigeria has also struggled to fulfill its OPEC quota of 1.5 million barrels per day.

Oil Production

In May 2025, the Nigerian Upstream Petroleum Regulatory Authority announced that oil production in Nigeria fell to 1,452,941 barrels per day, marking a 2.20 percent decline compared to the 1,485,700 bpd recorded in April.

On Tuesday, the Nigerian National Petroleum Company Limited (NNPCL) reported revenue of ₦6.008 trillion for May 2025.

NNPCL Group Chief Executive Officer, Bayo Ojulari

The recent monthly summary published by the national oil corporation on Monday indicated that May’s revenue reflected a slight increase from the ₦5.972 trillion noted in April.

In Nigeria, hydrocarbon extraction is currently taking place in 323 developed fields located in both onshore and offshore areas. These fields contain reservoirs of crude oil, condensates, or natural gas and are associated with 265 production processing stations, from which the stabilized oil and gas are exported through 31 export terminals. The onshore processing infrastructure is connected to 8 export terminals for crude oil, condensate, and NGLs via pipelines that stretch for 5,284 kilometers. Some of the delivery pipelines linked to the five onshore export terminals are utilized by both asset operators and independent oil producers for the transportation, storage, and lifting of crude oil blends, either for export or for delivery to domestic refineries.

Tinubu’s instructions followed the NNNPCL’s announcement of its successes in combating pipeline vandalism and ensuring the complete availability of essential crude oil pipelines. However, it expressed disappointment that Nigeria’s crude oil production still falls short of government expectations. On Tuesday, the state-owned company declared that five of its major crude evacuation pipelines attained full availability between May and June 2025, marking a significant achievement in the ongoing efforts to stabilize Nigeria’s oil infrastructure. The pipelines include the Trans-Niger Pipeline, Oando Brass Pipeline, Trans-Forcados Pipeline, Trans-Escravos Pipeline, and the Trans-Ramos Pipeline, all of which run through vital economic routes in the Niger Delta and are crucial for transporting crude oil from wellheads to export terminals.

Sources: The Channels Television