Monday, September 8, 2025
24.1 C
Lagos

Oil Assets Divestments Will Boost Production, Employment – Wabote

Executive Secretary, Nigerian Content Development and Monitoring Board (NCDMB), Engr. Simbi Kesiye Wabote with some members of the National Executive Committee and NCDMB Branch Executive of the Petroleum and Natural Gas Senior Staff Association (PENGASSAN) at the 2023 Energy and Labour Summit in Abuja.

The Nigerian oil and gas industry is poised for a boost in crude oil production, employment creation, and capital injection with the planned divestment of some assets by select international oil and gas companies and concomitant acquisition by Nigerian operating companies, the Executive Secretary, Nigerian Content Development and Monitoring Board (NCDMB), Engr. Simbi Kesiye Wabote said last Wednesday.

The Executive Secretary painted this picture while delivering the keynote address on Divestments in oil and gas: the challenges, the opportunities, and the implications to the industry in Nigeria at the 2023 Petroleum and Natural Gas Senior Staff Association (PENGASSAN) Energy and Labour Summit in Abuja.

Quoting the AfricaReport magazine, he stated that about 26 oil mining licenses have been divested or acquired by oil and gas companies in the Niger Delta Basin area of Nigeria in the past decade. Some of the divestments currently on the cards include the plan by Shell and ExxonMobil to sell oil and gas assets worth billions of dollars, in addition to Eni’s announcement in September of an agreement with Oando PLC for the sale of NAOC interests in six (6) onshore blocks and Okpai gas power plant in, Delta State.

He emphasised that divestments of oil assets are not necessarily negative, rather they present an avenue for the local capacities and capabilities that have been developed through local content implementation to be brought to bear in the upstream sector.

Wabote outlined several opportunities that would accrue from divestments, such as the injection of new capital, the rejuvenation of divested assets, and an increase in crude oil production through the investment in technologies by the acquiring firms.

Other direct benefits are the creation of direct and indirect employment opportunities by the indigenous companies and their service providers.

He reiterated that the divestments confirm that Nigerians and indigenous companies have come of age and have acquired the technical, managerial, and financial capabilities to play in the “big league”. He added that “the involvement of our financial institutions on the transactions represents means of efficient capital deployment and capacity building on loans syndication on an international scale. This is also applicable to legal services, insurance, government relations, employee relations, community liaison, and others.”

Aside from the opportunities, the NCDMB boss equally highlighted challenges encountered in the divestment exercises. These revolved around the time required to get necessary regulatory approvals as well as the substantial interests from various groups covering political, legal, communities, and labour. Among other challenges are the potential for the disruption of oil and gas production, job losses, as well as “access to latest technology especially if the new investors lack the technical expertise or have no support from original equipment manufacturers.” There are also issues around how “to manage legacy issues or liabilities related to the environment, communities, and other social commitments and pressure on new investors to recoup investments on time to offset loans and address other financial requirements.”

The NCDMB boss assured that the Board would continue to partner with industry stakeholders to institute regulations that would ensure that the increasing footprints and stakes of indigenous oil and gas production companies would not lead to a reduction in Nigerian content compliance. He promised that the Board would continue to partner with PENGASSAN to shape a future where Nigeria’s energy industry not only survives but thrives in the face of change.

spot_img
spot_img

Hot this week

Nigeria, Brazil Central Banks Deepen Economic, Financial Co-operation

Nigeria’s Central Bank Governor, Olayemi Cardoso, has held talks...

Ecobank Nigeria to Host Second Edition of Design & Build, Showcasing Premier Innovators in Design, Construction

Ecobank Nigeria, a subsidiary of the leading pan-African banking...

Expert: Fintech, Financial Inclusion Critical for Sustainable Growth of Nigerian Economy

A renowned economist, Dr. Biodun Adedipe, the Chief Consultant/CEO,...

Sterling Bank Marks One Year of Africa’s Groundbreaking Core Banking System

Number one Best Workplace in Banking in Nigeria and...

Topics

‘AIICO Will Meet 1st Phase Recapitalisation Deadline’

AIICO Insurance Plc has restated its commitment in ensuring...

Ericsson to Acquire IT Services Capabilities from France’s Devoteam

­Ericsson has announced that it is buying the Devoteam...

IoT Market in Africa, ME Targets 15% Growth in 2018

The Middle East and Africa (MEA) Internet of Things...

Danbatta Tasks NODITS on Effective Actualisation of Mandates

The Executive Vice Chairman and Chief Executive Officer (EVC/CEO)...

Ecobank CEO, Akinwuntan, Charges Graduands on Digital, Excellence in New World Order

Managing Director, Ecobank Nigeria, Patrick Akinwuntan (3nd right) and Vice...

The Alternative Bank Enters Market with Lagos, Abuja, Kano Launch

L-R: Chairman, The Alternative Bank, MUHTAR BAKARE; Executive Chairman,...

Worldwide Tablet Shipments Top 38.7m in 2nd Qtr, 12% Decline

Worldwide tablet shipments, inclusive of slates and detachable reached...

Polaris Bank, NCF Partner on Tree-Planting Drive to Combat Carbon Emissions in Rivers

Polaris Bank has partnered with the Nigeria Conservation Foundation...
spot_img

Related Articles

Popular Categories

spot_imgspot_img