WIEN lauds FG’s divestment deals, urges further approvals

The Women in Energy Network (WIEN), a leading advocate for gender equity in the energy sector, has expressed profound satisfaction with the government’s recent approval of oil and gas asset divestment transactions.

In Lagos, WIEN President Mrs. Eyono Fatai-Williams lauded the Tinubu administration’s decision to collaborate with all parties to finalise these deals, marking a pivotal moment for an industry plagued by decades of stagnation. She highlighted that these approvals would stimulate domestic economic growth, enhance oilfield activities, boost foreign exchange income, and increase local content.

During the 2024 Nigerian Oil and Gas (NOG) Energy Week in Abuja, the Commission Chief Executive (CCE) of the Nigeria Upstream Petroleum Regulatory Commission (NUPRC), Mr. Gbenga Komolafe, announced the first set of approvals for parties who have completed the necessary ministerial approval processes. Notably, Oando Energy Resources (OER) is set to acquire a 20 percent stake divested by the Nigeria Agip Oil Company (NAOC) in oil blocks operated under the NNPC/NAOC/Oando joint venture in the Niger Delta.

Komolafe revealed that the NAOC-Oando divestment is finalized, with a signing ceremony imminent. Similarly, the Equinor-Project Odinmim divestment is complete, pending a signing ceremony. The SPDC–Renaissance deal is undergoing due diligence, and the NUPRC is awaiting a ministerial consent application for the ExxonMobil–Seplat deal.

Once all divestment deals are approved, Nigerian companies will exclusively operate nearly all joint venture assets previously managed by Shell Petroleum Development Company (SPDC), Nigeria Agip Oil Company (NAOC), and Mobil Producing Nigeria (MPN). This transition will see the NNPC/NAOC/Oando JV become NNPC/Oando JV, NNPC/Shell/TotalEnergies/Agip JV become NNPC/Renaissance JV, and potentially NNPC/MPN JV become NNPC/Seplat JV. Additionally, the Equinor divestment introduces another local independent into the deepwater production sharing agreement (PSA) operated by Chevron.

Mrs. Fatai-Williams celebrated the divestments as a testament to local operational and financial capacity, expressing satisfaction that the investments in these transactions have been validated. She urged the government’s lease administrator and remaining parties to expedite their completion, emphasizing the importance of national control and full benefit from the country’s resources.

She highlighted the growing professionalism and expertise of Nigerians in the industry, attributing these successes to the Nigerian Content policy’s impact over the past 12 years. She encouraged new players in the divested assets to focus on rapid recovery of oilfield activities and aggressive exploration and production to build reserves and output.

Mrs. Fatai-Williams urged Nigerian companies to confidently take over the roles of exiting IOCs, adding value to the acquired assets. She cited examples of Nigerian companies like Seplat, Xenergi, Platform, and Nedogas that have successfully reactivated marginal fields previously sidelined by international oil companies.

With Nigerians leading the industry, she noted, there would be guaranteed job execution domestically, economic benefits, local industrial growth, and value chain optimization. She advised all Nigerian JV partners to avoid disputes and competition for operatorship, emphasizing that a successful venture benefits all stakeholders.