NNPC gives IOCs conditions for divestment from Nigeria

The Group Managing Director of the Nigerian National Petroleum Company Limited (NNPC), Mele Kyari, has said International Oil Companies (IOCs) that divest from Nigeria’s upstream sector must address issues of abandonment and decommissioning of oil assets.

Kyari said this Monday at the opening session of the 5th Nigerian International Energy Summit in Abuja.

His comment came about six months after he highlighted the key guidelines that would guide the evaluation of would-be replacement of divesting partners in the oil and gas industry.

On the wave of divestments of IOCs from Nigeria’s upstream sector, the NNPC boss told participants at the conference that while the country understood the rights of companies to freely divest, it was, however, critical to ensure that the right thing is done so as to avoid disruption.

He further said issues and obligations related to abandonment and decommissioning must be fully addressed and discharged in line with global best practices, regulations, conventions, and laws.

Kyari said: “Companies that are divesting, they are leaving our country literally and that’s the way to put it. But they are not leaving because opportunities are not here, these companies are shifting their portfolios where they can add value and not just that but where they can add to the journey of net carbon zero-emission.

“We understand this very perfectly. But also, we cannot afford to realize that this country must benefit from the realities of today.

 “We will work with our partners, we understand the necessity for their investments, we do know that there are issues, we understand that this must take place, but also it must be done in such a way that we are able to deal with issues around abandonment and decommissioning.

“We will also make sure that whatever arrangement that is put in place, will show that we are also alive to the energy transition journey that we have embarked on.”

Kyari said, currently, the NNPC was adopting various strategies towards the attainment of a carbon-neutral economy, while ensuring that the industry remains viable.

He noted that the passage of the PIA remained a key enabler and laudable reform in the Nigerian energy sector, clearly delineating various stakeholders’ roles to enhance value realisation in the sector. (New Telegraph)