Nigeria’s Minister of Petroleum Resources, Heineken Lokpobiri, reassures that international oil companies (IOCs) like Shell, ExxonMobil, and Eni are not leaving Nigeria, despite ongoing divestment deals. Speaking at the African Energy Week in Cape Town, South Africa, Lokpobiri clarifies that divestment is part of a strategic shift, with these companies moving towards offshore operations, not exiting the country.
Lokpobiri explains that offshore projects are more attractive to IOCs due to fewer local challenges, providing a safer, more stable working environment. “I want to reassure everyone that no company is leaving Nigeria. The companies divesting are shifting to deep offshore fields, leaving onshore operations to local operators,” he emphasizes.
Local Operators Ready to Handle New Challenges
The Minister further highlights that indigenous companies, such as Seplat and Oando Plc, have proven their ability to manage these operations. He notes that these companies have worked alongside IOCs for years and are fully capable of taking on the assets that are now being sold off.
“Local companies like Seplat and Oando have already demonstrated substantial capacity, and with the divestments, they’ll continue to manage these assets effectively. Nigeria will not lose out on royalties, taxes, or capital inflows,” Lokpobiri assures. He underscores that these changes offer new opportunities for Nigerian companies to further demonstrate their capabilities in the energy sector.
Shifting Focus and Growing Local Capacity
The oil industry in Nigeria is undergoing a significant transformation, as IOCs divest their onshore stakes, allowing local companies to take over operations. This trend is part of a larger strategy where IOCs are consolidating their focus on offshore or more profitable ventures.
In May 2024, Shell sold its 30% stake in the Shell Petroleum Development Company of Nigeria (SPDC) to a consortium of indigenous companies, marking a historic shift. Other major IOCs, including ExxonMobil and Eni, have also reduced their stakes in onshore assets in Nigeria. Despite these changes, Nigeria’s oil sector remains resilient, with local companies taking charge of operations and ensuring continued production.
The transition is seen as a step toward strengthening Nigeria’s energy sector, enhancing the role of indigenous operators, and ensuring the long-term sustainability of the industry.
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