IOCs staying despite divestments – NUPRC
The Nigerian Upstream Petroleum Regulatory Commission has clarified that international oil companies are not exiting Nigeria despite their recent divestments.
According to NUPRC CEO, Gbenga Komolafe, these divestments are part of “portfolio rationalisation,” a common practice in other markets.
At the recent NAPE Conference in Lagos, the CEO of the Nigerian Upstream Petroleum Regulatory Commission, Gbenga Komolafe, explained that portfolio rationalisation, which involves divestments by IOCs, is a common practice globally.
He highlighted that such divestments open up opportunities for more investments and enhance local participation in Nigeria’s upstream oil sector.
“It is also important to point out that no international oil company has left Nigeria, as we even see erroneously in the media. It is good for us to note that what the industry has experienced is portfolio rationalisation, which is not uncommon in other jurisdictions. Divestment gives an opportunity for more investment and increases local participation in the upstream,” he explained.
Komolafe emphasized that the Nigerian Upstream Petroleum Regulatory Commission’s focus on regulatory transparency and credibility is evident in its handling of upstream asset divestments.
He noted that the commission is set to insure these divestments in the second quarter of 2024 to support the ongoing portfolio rationalisation process.
Komolafe also noted that four divestments and six transactions received ministerial approvals during this period.
“We are glad to report that, based on the clearly articulated framework, four divestments and six transactions have received ministerial consent and approval within this period,” he stressed.
Komolafe also addressed the issue of domestic crude supply to local refineries, stating that the Nigerian Upstream Petroleum Regulatory Commission is fully committed to ensuring optimal crude supplies. He emphasized that this will be done under fair and just commercial terms, in line with the provisions of the Petroleum Industry Act.
“Accordingly, the NUPRC has facilitated the insurance of guidance, templates and guidelines that provide clarity and entrench administration. We will continue to implement the acts and foster collaboration among industry actors to deepen domestic energy security, availability of products and affordability of energy commodities consistent with our market as enshrined in the PIA,” he stressed.
The CCE of NUPRC highlighted the commission’s commitment to decarbonisation through the Nigerian Gas Flare Commercialisation Programme, which aims to capture 250 million cubic feet of gas flares daily, significantly reducing emissions.
Komolafe expressed confidence in Nigeria’s ability to achieve its energy goals through the commission’s initiatives. He urged industry professionals to support NUPRC’s efforts in driving a sustainable energy future, emphasizing the importance of collective action to ensure long-term success.
