IOCs staying despite divestments – NUPRC

• Published On: 21 November 2024 at 13:07

The Nigerian Upstream Petroleum Regulatory Commission has stressed that multinational oil corporations are not leaving Nigeria, despite recent divestments.

According to NUPRC CEO Gbenga Komolafe, these divestments are part of a process known as "portfolio rationalisation," which is prevalent in other markets.

At the recent NAPE Conference in Lagos, Gbenga Komolafe, CEO of the Nigerian Upstream Petroleum Regulatory Commission, emphasized that portfolio rationalisation, which includes IOC divestments, is a typical process worldwide.

He emphasized that such divestments create prospects for additional investment and increase local engagement in Nigeria's upstream oil sector.

"It is also crucial to note that no multinational oil business has left Nigeria, as some media outlets incorrectly claim. It is important to highlight that the industry has undergone portfolio rationalisation, which is not unusual in other jurisdictions. Divestment allows for additional investment and boosts local participation in the upstream," he explained.

Komolafe noted that the Nigerian Upstream Petroleum Regulatory Commission's approach to upstream asset divestments demonstrates its commitment to regulatory transparency and legitimacy.

He stated that the commission intends to insure these divestitures in the second quarter of 2024 to support the ongoing portfolio rationalisation exercise.

Komolafe further stated that four divestitures and six transactions gained ministerial sanction during this time.

"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 told reporters.

Komolafe also addressed the issue of domestic crude supply to local refineries, adding that the Nigerian Upstream Petroleum Regulatory Commission is 100% dedicated to maintaining optimal crude supplies. He highlighted that this will be done on fair and just business conditions, in accordance with the Petroleum Industry Act.

"As a result, the NUPRC has facilitated the insurance of information, templates, and guidelines that enhance clarity and strengthen administration. We will continue to implement the acts and develop collaboration among industry actors to strengthen domestic energy security, product availability, and energy commodity affordability in accordance with our market, as outlined in the PIA," he stated.

The CCE of NUPRC emphasized the commission's commitment to decarbonization through the Nigerian Gas Flare Commercialisation Programme, which intends to capture 250 million cubic feet of gas flares each day, greatly lowering emissions.

Komolafe expressed confidence in Nigeria's ability to meet its energy targets through the commission's actions. He asked industry leaders to support NUPRC's efforts to drive a sustainable energy future, highlighting the significance of working together to secure long-term success.