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By Uche Usim
Following the mass divestment of assets belonging to some International Oil Companies (IOCs), the latest being Shell Petroleum Development Company (SPDC) Onshore and Gas Assets Limited, the Minister of State, Petroleum Resources (Oil), Heineken Lokpobiri, has asked worried Nigerians not to lose sleep over the matter as the country loses nothing.
Lokpobiri spoke on Wednesday on the sidelines of the World Economic Forum in Davos, Switzerland.
According to him, the IOCs’ exit, on the contrary, presents a golden opportunity for indigenous companies with requisite capacity to scale up their operations and rake in more profit.
He assured that the government remains committed to fostering a business-friendly environment in the oil and gas sector and as such, will not scuttle legitimate business transactions in the industry.
The Minister said: “On the part of the government, once we get the necessary documents, we will not waste time to give the necessary considerations and consent. This would not adversely affect Nigeria. The government is engaging the IOCs regarding the decommissioning of non-productive assets and abandonment issues”.
The Minister stated that concerns raised by IOCs, particularly with Nigerian banks, have been addressed, assuring a safe environment for the handling of funds related to decommissioning and abandonment.
“As a government, we will adhere to the law without jeopardizing legitimate businesses”, he added.
On preventing IOCs from diversifying their upstream operations, the Minister clarified that companies operating in that space have not left their upstream deepwater assets. “Instead, they are diversifying their onshore assets, creating opportunities for local companies with developed capacity and financing to acquire and profitably manage these assets”, he added.
The Minister reiterated the government’s commitment to addressing sector concerns, including insecurity and aging infrastructure, especially pipelines.
He highlighted ongoing engagements with companies to invest in pipeline technology and other critical infrastructure within the oil and gas value chain.
Lokpobiri revealed that President Bola Tinubu has since approved a licensing bid round, which demonstrates the government’s dedication to initiating the process promptly.
