NNPC Clarifies Role in Divestment of Foreign Oil Companies in Nigeria

The Nigerian National Petroleum Company (NNPC) Limited has recently clarified its role in the divestment of international oil companies (IOCs) from onshore and shallow water assets in the country.

NNPC’s Group Chief Executive Officer (GCEO), Mele Kyari, stated that the company’s role is that of a facilitator, ensuring energy security and optimal production from these assets.

During the 7th edition of the Nigeria international energy summit (NIES) 2024 in Abuja, Kyari emphasized that NNPC must ensure that any divestment arrangement guarantees incremental production and benefits both parties involved.

The summit, themed “Navigating the New Energy World Order: Security, Transition, and Finance,” comes at a time when several IOCs are divesting their Nigerian assets.

For instance, Seplat Energy Plc is in the process of acquiring ExxonMobil’s entire share in Mobil Producing Nigeria Unlimited (MPNU), while Oando has signed a deal to acquire 100 percent of Eni’s shares in Nigerian Agip Oil Company Limited (NAOC Ltd).

Additionally, Shell Plc has announced plans to sell its Nigerian onshore oil assets to a consortium of local companies for over $1.3 billion, subject to regulatory approval.

Despite these ongoing processes, Kyari has made it clear that NNPC is not hindering any company’s exit, but rather ensuring that energy security is maintained and that the arrangements are mutually beneficial.

The company is also willing to invest in the proposed African Energy Bank as a means of providing long-term funding for energy projects in Africa and ensuring energy security.

In terms of energy infrastructure, the completion of the Obiafu-Obrikom-Oben Pipeline is in sight, which will further drive energy security in Nigeria.

NNPC remains committed to working with stakeholders to close the energy deficit gap and create wealth for Nigerians.

All indicators suggest that the country’s energy scarcity will be resolved within the next 10 years.