The Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, assured the public that the Nigerian government supports Shell’s decision to sell its onshore assets to a consortium of five Nigerian companies. Speaking at the World Economic Forum in Davos, Switzerland, Lokpobiri emphasized the government’s dedication to fostering a conducive business environment within the oil and gas sector.
In a statement issued by Lokpobiri’s special adviser on media and communication, Nneamaka Okafor, the minister clarified that the government would not obstruct legitimate business transactions in the oil and gas sector. “Once we receive the necessary documents, we will promptly provide the required considerations and consent,” he stated.
Addressing concerns about international oil companies (IOCs) diversifying their onshore assets, Lokpobiri asserted that Nigeria stands to gain from such moves. He emphasized that this strategy creates opportunities for indigenous companies with the capability to acquire and professionally manage these assets, leading to increased profitability and the realization of their full potential.
Lokpobiri underlined the government’s active engagement with IOCs on issues related to the decommissioning of non-productive assets and abandonment concerns. He assured that concerns raised by IOCs, especially regarding Nigerian banks, have been addressed, ensuring a secure environment for the handling of funds associated with decommissioning and abandonment.
“As a government, we will adhere to the law without jeopardizing legitimate businesses. IOCs have not abandoned their upstream deep-water 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,” Lokpobiri explained.
The minister reiterated the government’s commitment to addressing sector concerns, including insecurity and aging infrastructure, such as pipelines. He highlighted ongoing discussions with companies to encourage investment in pipeline technology and other critical infrastructures within the oil and gas value chain.
Additionally, Lokpobiri announced that President Tinubu has approved a licensing bid round, showcasing the government’s dedication to initiating the process promptly.