News Formal

IOCs Divestment: Navigating Regulations, Unlocking Growth for Local Oil Companies

  • 📰 PremiumTimesng
  • ⏱ Reading Time:
  • 62 sec. here
  • 8 min. at publisher
  • 📊 Quality Score:
  • News: 45%
  • Publisher: 78%

Business News

OIL INDUSTRY,DIVESTMENT,NIGERIA

The divestment of International Oil Companies (IOCs) from Nigeria presents both challenges and opportunities for the country's energy sector. While it signifies a potential shift in power towards local companies, it also necessitates careful navigation of regulatory frameworks and strategic investments to ensure a prosperous future.

IOCs divestment: Navigating regulations, unlocking growth for local oil companies, By Akpandem JamesSaraki at 62: As Different as it is the same, By Yusuph OlaniyonuDespite UNICEF’s endorsement, Nigeria’s only open defecation-free state struggles with human faecesBeneath the Surface: The Dark World of Illicit Tin Mining in PlateauEditorialIOCs divestment: Navigating regulations, unlocking growth for local oil companies, By Akpandem JamesSaraki at 62: As Different as it is the same, By Yusuph...

The flip side is that such divestments could provide indigenous firms an opportunity to expand their operations and tap into valuable resources previously controlled by IOCs. This transition could unlock substantial reserves and release more than 500 million barrels of oil and three trillion cubic feet of gas if managed effectively.

As of 19 December, the Federal Government had approved the TotalEnergies/Chappal deal , ExxonMobil’s sale of Mobil Producing Nigeria Unlimited to Seplat Energy , Eni’s divestment of Nigerian Agip Oil Company to Oando Plc , and Equinor Nigeria Energy’s divestment to Project Odinmin Investments . The latest is Shell’s $2.4 billion onshore asset sale to Renaissance Africa Energy.

One of the most contentious aspects of oil operations has been host community issues. The status of Host Community Trust Fund obligations is assessed to ensure the successor entity has robust social inclusion programmes in line with the Petroleum Industry Act , 2021. Compliance with decarbonisation plans and adherence to environmental, social and governance principles are also evaluated. Also, a robust mechanism is implemented to prevent labour disputes during and after the divestment process.

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 3. in NG
 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

Nigeria Nigeria Latest News, Nigeria Nigeria Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Niger Delta Groups Urge Tinubu to Halt Oil Company DivestmentA coalition of Niger Delta environmental advocacy groups has called on President Bola Tinubu to stop proposed divestments by oil companies in the region, demanding a transparent review and addressing the long-term environmental damage caused by their operations.
Source: thecableng - 🏆 2. / 80 Read more »

NNPC's Utapate crude grade enters global market, projected to boost Nigeria’s oil exportsThe Nigerian National Petroleum Company (NNPC) Limited has unveiled the Utapate crude oil blend, its latest crude oil grade, to the international crude oil market.
Source: thecableng - 🏆 2. / 80 Read more »