See IOCs’ divestments as blessing, NUPRC boss charges IPPG

From Uche Usim, Abuja

The Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC),

Gbenga Komolafe, has urged stakeholders in the petroleum industry, especially the Independent Petroleum Producers in Nigeria (IPPG) to look at the brighter side of divestments of International Oil Companies (IOCs) as many opportunities for local players abound.

Komolafe gave the charge at the opening dinner of the ongoing Nigerian oil and gas conference holding in Abuja.

According to him, local players now have a golden opportunity to prove their mettle by leveraging  the local content window in value addition and optimising the development of the nation’s hydrocarbon resources.

He emphasised the need for indigenous players across the value chain to deploy their ingenuity in promoting vibrancy and capacity utilisation in the industry

“As a regulator, the commission is not oblivious of the threat posed to the development of the Nigerian hydrocarbon industry by the divestment of the IOCs.

“The impetus for divestment by the IOC is mainly attributable to the hostile upstream petroleum environment arising from crude oil theft and energy transition as a global response to the advocacy for reduction in carbon emissions.

“Our view as a commission is that IPPG and other prospective indigenous players should perceive the IOCs’ divestment in some of the upstream assets as an opportunity rather than a threat to the development of the Nigerian upstream petroleum sector,” he said.

Komolafe noted that indigenous companies presently contribute about 30 percent of the nation’s crude oil and 20 percent of the gas production, as well as 40 and 32 percent of oil and gas reserves, respectively. He also informed that seven indigenous companies are among the top 20 companies with the highest oil reserves in Nigeria.