Divestment Was In Our Best Interest For Value Retention In-country — Sen. Lokpobiri
The Honourable Minister of State for Petroleum Resources (Oil), Sen. Heineken Lokpobiri, Ph.D, has reaffirmed that divestment is a vital component of the energy business. When strategically executed, he said, it delivers measurable benefits to Nigeria’s oil and gas sector.
He emphasized that the successful conclusion of long-pending divestment transactions under the #RenewedHope administration has significantly boosted crude oil production, increased local capacity, while also expanding the sector with the IOCs moving to the deep offshore.
A release signed by Nneamaka Okafor, Media and Communications Aide, to the Honourable Minister, says, Sen. Lokpobiri made this statement while receiving a delegation from the Independent Petroleum Producers Group (IPPG), led by its Chairman, Mr. Abdulrazaq Isa, who visited to express appreciation to President Bola Ahmed Tinubu for his support to indigenous companies in recent landmark divestment deals.
The IPPG delegation highlighted key transactions including:
- Oando Petroleum and Natural Gas Company Limited’s acquisition of NAOC from Eni,
- Chappal Energies’ acquisition of Equinor Nigeria’s assets,
- Seplat Energy’s acquisition of Mobil Producing Nigeria Unlimited (MPNU), a subsidiary of ExxonMobil,
- Renaissance Africa Energy’s acquisition of Shell’s onshore assets.
“These divestments, once stalled, are now completed and have led to a measurable increase in our production levels,” the Minister stated. “They validate our position that divestment is in our national interest — especially for in-country value retention and sustainability in the sector.”
The IPPG delegation also lauded the President’s inclusive reforms in the energy sector, particularly the appointment of IPPG members to strategic leadership roles. According to Mr. Isa, “We deeply appreciate President Tinubu’s recognition of local capacity. His support has not only deepened indigenous participation but has also infused fresh momentum into the sector.”
In his closing remarks, Sen. Lokpobiri reiterated the Federal Government’s commitment to supporting indigenous companies in future divestment engagements with International Oil Companies (IOCs). “As I’ve always said, the success of IPPG is the success of our national quest to ramp up production,” he noted.
He however emphasized that “There’s no alternative to increasing production. Those who have acquired these assets must be ready to re-enter inactive wells. That’s the way forward, and I am happy that some of them have already began the process”, he added.