Nigeria’s Petroleum Minister, Heineken Lokpobiri, has refuted reports claiming International Oil Companies (IOCs) are pulling out of Nigeria, clarifying instead that these companies are merely shifting focus towards offshore ventures due to operational dynamics.
Speaking at African Energy Week in Cape Town, South Africa, Minister Lokpobiri emphasized that divestments reflect strategic repositioning rather than an exit from the Nigerian market. He noted, “No company is leaving Nigeria. They are opting for deep offshore operations to avoid challenges posed by some host communities.”
Lokpobiri further addressed recent mergers and acquisitions in the Nigerian oil sector, highlighting that Nigeria’s indigenous companies are well-equipped to manage onshore assets previously operated by IOCs. He cited examples like Seplat’s acquisition of ExxonMobil assets and Oando’s acquisition of NAOC, illustrating that these indigenous companies have demonstrated substantial capacity in managing oil resources.
With IOCs shifting towards offshore ventures, local companies now have the opportunity to take the lead in onshore and shallow water operations, fostering growth in Nigeria’s indigenous oil sector. Lokpobiri assured that Nigeria would continue benefiting from taxes and royalties, emphasizing, “We have nothing to lose. This divestment empowers our local industry to showcase their skills and strengthen the sector.”
The petroleum industry has indeed seen increased opportunities for Nigerian companies as IOCs realign their focus, with local firms stepping up to maintain production and revenue streams.
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