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Why international oil companies are leaving Nigeria — NNPC boss reveals

By Uthman Salami

The Group Managing Director of the Nigerian National Petroleum Company (NNPC) Limited, Mele Kyari said International Oil Companies are leaving Nigeria and shifting their portfolios to where they can add value to the journey towards carbon net-zero commitment.

Kyari made this known during his speech at the 2022 Nigerian International Energy Summit (NIES2022) in Abuja on Monday, February 28.

Earlier, Seplat Energy Plc announced that it had signed an agreement to acquire the entire share capital of Mobil Producing Nigeria Unlimited (MPNU) from Exxon Mobil Corporation, Delaware (ExxonMobil).

According to the Cable, the Royal Dutch Shell had also said it was discussing with the federal government to sell its onshore oil assets in Nigeria.

The NNPC GMD said, “Companies are divesting. They are leaving our country. That is the best way to put it.

“They are not leaving because opportunities are not here but because companies are shifting their portfolios where they can add value and not just that, but where they can also add to the journey towards carbon net-zero commitment.”

The NNPC GMD also said that the country must have “the most friendly fuel” in place in the next five to 10 years while building its ability to use renewables.

He added; “We can’t do without financing and we also know that there is a shortage of financing in this respect.

“Therefore, for us in NNPC, we are here to serve you. We are here to facilitate this process. We will work with our partners, and of course, you are seeing some of the consequences.

“We understand the necessity for divestment. We do know that there are issues. We understand that this must take place but also that it must be done in such a way that we can deal with issues around decommissioning and also make sure that whatever arrangement that is put in place ensures that we are also aligned along the energy transition journey that we are going to.”

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