Hurdles as Nigerian companies take over IOCs’ onshore assets | The Guardian Nigeria News - Nigeria and World News

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Despite landmark opportunities created from divestment of onshore assets by International Oil Companies (IOCs), oil and gas experts, yesterday, raised concerns about indigenous firms’ preparedness to take over these assets amid lingering challenges.

Senior Advisor Global Affairs to H.R.H. Prince Abdulaziz bin Salman Al Saud, Minister of Energy, kingdom of Saudi Arabia, Dr. Nasser A. Al-Dossary ; CEO/GMD, NNPC, Mallam Mele Kyari; General Manager for International Relations, Raed Althukair, and Group General Manager, NAPIMS, Mr. Bala Wunti at the opening ceremony of the Nigerian International Energy Summit 2022 in Abuja…yesterday.

On divestment, recall that, Shell is expected to divest about $2.3 billion, ExxonMobil is expected to divest as much as $15 billion worth of assets. Eni’s figure was put at about $5 billion. While the UK, the US and Norway, were ranked the top three decommissioning destinations in the next 10 years, Nigeria followed Angola as the seventh country that would be spending heavily on decommissioning in the next decade.

It could also decide to keep the operations, they said. Reportedly, IOCs in Nigeria may this year consider offshore decommissioning campaign for selected fields even as industry players like Chairman/CEO of International Energy Services Ltd, Dr Diran Fawibe stressed on the need for the sector regulator, Upstream Petroleum Regulatory Commission to work with the multinationals in ensuring that the offshore sites were decommissioned.

According to him, though Nigeria understands that energy transition agenda is pushing IOCs to change their portfolio, issues on abandonment and decommissioning remain critical.

 

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