IOCs divestments signals growth of indigenous firms – IPPG
By Emmanuella Anokam
The Indigenous Petroleum Producers (IPPG) has called for swift actions on pending and ongoing divestments in the Nigeria’s energy sector.
IPPG said the International Oil Companies (IOCs) divestment signals expediential growth of the indigenous companies and participation in the energy sector.
Mr Abdulrazaq Isa, Chairman, IPPG/Waltersmith Group, said this at the ongoing 7th Nigeria International Energy Summit (NIES 2024) Abuja.
He advocated expedited conclusion and closure of the divestment processes, citing the urgent need for government intervention to facilitate a seamless transition.
“In the light of the IOCs divestment in Nigeria, it is evident that an unprecedented transformation shift is ongoing.
“It signals expediential growth of the indigenous companies’ participation in the country’s energy sector which will lead to increase empowerment, economic growth and sustainable management of Nigeria’s hydrocarbon resources.
“Indigenous operators will gain incremental expertise, leading to capacity growth in the industry,” Isa said.
Isa said the divestment of oil and gas assets to indigenous operators in Nigeria would foster greater sustainability, prosperity and inclusivity within the industry and broader economy.
He said that as the new dawn emerged for the industry, driven by the indigenous operators, energy security as well as accelerated value capture from Nigeria’s hydrocarbon assets, socio-economic development and transformation of citizens must remain a priority.
“It is on this very important note that the IPPG is passionately praying for expedited conclusion and closure of the divestment processes.
“The current status where the sellers have signalled full intentions to leave, whereas the buyers are yet to effectively take over the operations of the assets, is very detrimental to the sector and the country.
“The industry would be most appreciative of the prompt intervention of government to untangle all issues and diligently fast track all relevant approvals,” he said.
The IPPG helmsman commended the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), led by Mr Gbenga Komolafe for putting in place a robust framework to guide the divestment process.
The global summit is being convened by the Federal Government as its official energy, oil and gas event, with the Nigerian National Petroleum Company Limited (NNPC Ltd) as the national host.
The summit with the theme: “Navigating the new energy world order: Security, Transition, and Finance,” wouldl hold from Feb. 26 to March 1. (NAN)(www.nannews.g)
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Edited by Rabiu Sani-Ali
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