The Chief Executive Officer of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Mr. Gbenga Komolafe, says that no international oil companies (IOCs) are leaving Nigeria despite the companies’ divestments.
Speaking at the just-concluded Conference of the Nigerian Association of Petroleum Explorationists (NAPE) in Lagos, Komolafe described the recent divestments by the IOCs in the oil sector as “portfolio rationalisation”.
He explained that portfolio rationalisation is not uncommon in other jurisdictions and that divestments provide opportunities for more investments and increase in local participation in the upstream sector of the industry.
“It is also important to point out that no international oil company has left Nigeria, as we even see erroneously in the media. It is good for us to note that what the industry has experienced is portfolio rationalisation, which is not uncommon in other jurisdictions. Divestment gives an opportunity for more investment and increases local participation in the upstream,” he said.
Komolafe emphasised that some of the testaments to the commission’s regulatory transparency and credibility drive are the insurance of the upstream asset divestment in the second quarter of 2024 to guide the recent portfolio rationalisation process.
According to him, four divestments and six transactions received ministerial approvals within the period.
“We are glad to report that, based on the clearly articulated framework, four divestments and six transactions have received ministerial consent and approval within this period,” he said.
The NUPRC boss expressed confidence that “new asset holders will conduct operations in a vigorous and business-like manner for optimal value creation for enhanced energy security and sustainability.”
Speaking on domestic crude supply to local refineries, he said the commission was keenly aware of its responsibility to ensure optimal crude supplies to domestic refineries under fair and just commercial terms and in line with the provisions of the Petroleum Industry Act.
“Accordingly, the NUPRC has facilitated the insurance of guidance, templates and guidelines that provide clarity and entrench administration. We will continue to implement the acts and foster collaboration among industry actors to deepen domestic energy security, availability of products and affordability of energy commodities consistent with our market as enshrined in the PIA,” local media reports quoted Komolafe as saying.
GIK/APA