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NNPC Explains Why Big International Oil Companies are Selling Off Assets, Leaving Nigeria

– Increase in bunkering and vandalism of oil facilities also cause for concern

March 01, 2022

Fresh insights as to why the oil majors are gradually scaling down their operations and planning their exit from the country have been unravelled

Providing the insight is the group managing director, Nigerian National Petroleum Company (NNPC) Limited, Mele Kyari

Shell, Chevron and many other international oil companies are selling off their oil assets in Nigeria, shifting focus to other businesses

With more announcements that international oil companies are selling off assets, the group managing director, Nigerian National Petroleum Company (NNPC) Limited, Mele Kyari has provided insight into what is actually happening.

According to him, more of these big oil companies are shifting their portfolios to where they can add value to the journey towards carbon net-zero commitment.

Kyari revealed this in a speech at the 2022 Nigerian International Energy Summit (NIES2022) in Abuja on Monday, 28 February 2022, Premium Times reports.

The company had last year announced its plan to offload onshore Nigerian oil assets in a bid to move to cleaner energy.

Are the oil companies really leaving?

The Punch reports that Kyari in his presentation said: “Companies are divesting. They are leaving our country. That is the best way to put it.

“They are not leaving because opportunities are not here but because companies are shifting their portfolios where they can add value and not just that, but where they can also add to the journey towards carbon net-zero commitment.”

He explained that the push for divestment is understandable but reassured that Nigeria have “the most friendly fuel” in place in the next five to 10 years while building its ability to use renewables.

“Therefore, for us in NNPC, we are here to serve you. We are here to facilitate this process. We will work with our partners, and of course, you are seeing some of the consequences.

“We understand the necessity for divestment. We do know that there are issues. We understand that this must take place but also that it must be done in such a way that we can deal with issues around decommissioning and also make sure that whatever arrangement that is put in place ensures that we are also aligned along the energy transition journey that we are going to.

” We are not leaving yet Royal Dutch/Shell Group, has refuted claims that it is selling off assets in preparations to exit operations from Nigeria. The firm however said it is only reviewing its deep offshore strategies in a renewed commitment to enhance deep water operations in the country, Leadership reports.”

Meanwhile, Legit.ng had earlier reported that oil companies are taking their investment to Libya after the country’s decade-long war looked over.

The report noted that the oil companies have expressed their desire to invest in Libya, due to the recently found stability.

It was also noted that the international oil companies are leaving Nigeria due to an increase in bunkering and vandalism of oil facilities.

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