NNPC gives OICs conditions for divestment from Nigeria

The Group Managing Director of the Nigerian National Petroleum Company Limited (NNPC), Malam 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 on Monday in Abuja at the opening session of the fifth edition of the Nigerian International Energy Summit.

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The NNPC boss’s comment comes about six months after he had highlighted key guidelines that would guide the evaluation of would-be replacement of divesting partners in the oil and gas industry.

The GMD had in August last year, while speaking at the Nigeria Annual International Conference and Exhibition, said learning from previous experiences, the NNPC had developed requisite Divestment Policy that will provide clear guidelines and criteria for divestment of partners’ interest in all its Joint venture and production sharing contract arrangements.

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

 He said, “For 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.”

The NNPC CEO acknowledged the need for cleaner energy globally but said the African continent must shape its narrative to reflect on its realities, including the high level of energy poverty, deficiency of critical infrastructures for electricity and transportation.

He confirmed that NNPC with partners was working together to ensure the attainment of Nigeria 2060 target for carbon neutrality.

 He also stated that the NNPC was making concerted efforts in the gas sector through various projects – NLNG Train 7, AKK, OB3, ELPS and others. 

 He added that the expansion and integration of domestic/regional power grids and growing the domestic gas markets via Autogas/Compressed Natural Gas/Liquified Petroleum Gas to power vehicles remain key to revitalising the industry.