Oil sector divestment boosts Nigeria’s national interest – Lokpobiri

From Femi Folaranmi, Yenagoa

The Minister of State for Petroleum (Oil), Senator Heineken Lokpobiri, has affirmed that the ongoing divestment in Nigeria’s oil sector is in the national interest, emphasising the active role of indigenous companies and the Federal Government’s support.

Speaking while receiving a delegation from the Independent Petroleum Producers Group (IPPG), led by Chairman Abdulrazaq Isa, Lokpobiri highlighted that long-pending divestment transactions, now concluded under President Bola Tinubu’s administration, have significantly boosted crude oil production.

He described divestment as a vital component of the energy business, noting that, when strategically executed, it delivers measurable benefits to Nigeria’s oil and gas sector, including increased local capacity and sector expansion as International Oil Companies (IOCs) shift to deep offshore operations.

“These divestments, once stalled, are now completed and have led to a measurable increase in our production levels,” Lokpobiri stated. “They validate our position that divestment is in our national interest — especially for in-country value retention and sustainability in the sector.”

Lokpobiri reiterated the Federal Government’s commitment to supporting indigenous companies in future divestment engagements with IOCs, stating, “As I’ve always said, the success of IPPG is the success of our national quest to ramp up production. There’s no alternative to increasing production. Those who have acquired these assets must re-enter inactive wells. That’s the way forward, and I am happy that some of them have already begun the process.”

IPPG Chairman Isa expressed gratitude to President Tinubu for supporting indigenous companies in recent divestment deals, including:

– Oando Petroleum and Natural Gas Company Limited’s acquisition of NAOC from Eni.
– Chappal Energies’ acquisition of Equinor Nigeria’s assets.
– Seplat Energy’s acquisition of Mobil Producing Nigeria Unlimited (MPNU), a subsidiary of ExxonMobil.
– Renaissance Africa Energy’s acquisition of Shell’s onshore assets.

Isa also praised Tinubu’s inclusive energy sector reforms, particularly the appointment of IPPG members to strategic leadership roles, noting, “We deeply appreciate President Tinubu’s recognition of local capacity. His support has not only deepened indigenous participation but has also infused fresh momentum into the sector.”