Page 8 - AfrOil Week 27 2022

AfrOil INVESTMENT AfrOil

“The impetus for divestment by the IOCs is as saying.
mainly attributable to the hostile upstream Komolafe also hailed Nigerian operators’
petroleum environment arising from the men- accomplishments to date, noting that local com-
ace of crude oil theft and energy transition as a panies had gained control over a substantial por-
global response to the advocacy for the reduc- tion of the country’s hydrocarbon resource base.
tion in carbon emission,” he said. “Remarkably, as of today, I’m proud to say that
Nigeria ought to respond to this develop- indigenous companies contribute about 30% of
ment by building up its own native capacity in crude oil and 20% of the gas production, as well
the upstream area of operations, the NUPRC as 40% and 32% of oil and gas reserves respec-
chief asserted. tively,” he said.
“Our view as a commission is that the IPPG Punch noted that IOCs have unloaded no
and other prospective indigenous players should less than 26 oil mining licences (OMLs) in the
perceive the IOCs’ divestments in some of the Niger River Delta area within the last 11 years.
upstream assets as an opportunity rather than Meanwhile, Shell (UK) and TotalEnergies
a threat to the development of the Nigerian (France) have announced plans to divest their
upstream petroleum sector ... It is indeed the stakes in the Shell Petroleum Development
right time to look inwards in the sector to boost Corp. (SPDC) joint venture, while ExxonMobil
the capability of the local content in value addi- (US) agreed in February of this year to sell its
tion and optimising the development of the stake in the Mobil Producing Nigeria Unlimited
nation’s hydrocarbon resources. Therefore we (MPNU) joint venture to Seplat Energy, a Nige-
encourage you as indigenous players across the rian firm. (The SPDC sales are on hold, however,
value chain to deploy your competencies and pending the outcome of a court case.)
ingenuity in promoting vibrancy and capacity IPPG is a group formed by 25 Nigerian oil
utilisation in the industry,” Punch quoted him and gas companies with global reach. ™

Shell follows Nigerian Supreme Court’s

order and suspends SPDC stake sale

NIGERIA SHELL (UK) has put plans for selling its 30% of Aghoro I in the Ekeremor Local Government
stake in the Shell Petroleum Development Corp. Area of Bayelsa State, Osagie Okunbor, man-
(SPDC) joint venture on hold pending the Nige- aging director of SPDC and chairman of Shell
rian Supreme Court’s resolution of a lawsuit Companies in Nigeria, said that Shell and its
related to an oil spill in 2018. local subsidiaries had announced their intention
The company’s Nigerian arm confirmed that to abide by the Supreme Court’s recent order to
the deal was on hold in a statement dated June maintain the status quo until October.
30. In response to media reports on Supreme He was referring to an order issued by the
Court proceedings in an appeal filed by residents court on June 16.

SPDC controls 19 onshore fields in southern Nigeria (Image: Shell)

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