NNPC to develop comprehensive divestment policy for IOCs

The Nigerian National Petroleum Corporation (NNPC) says it has plans develop a comprehensive divestment policy for International Oil Companies ( IOCs) operating in the country to protect strategic national interest.

Mr Mele Kyari, the Group Managing Director, NNPC disclosed this in Lagos during the 2021 Society of Petroleum Engineers (SPE) Nigeria Annual International Conference and Exhibition (NAICE).

The conference has as its theme: “The Future of Energy – A Trilogy of Determinants: Climate Change, Public Health, and the Global Oil Market.”

Kyari said the divestment policy would ensure that only investors with technical, financial and operational capabilities take position of the IOCs assets thereby adding value to the industry.

“We have seen a whole wave of divestments by major IOCs operating in our country.

“NNPC as their major partner cannot stop partners from divesting their interests. We can’t do this because we all have the right to migrate our portfolios depending on the circumstances.

“The divestments create challenges for us in ensuring that we get right and competent investors to take position and add value to the industry.

“We have engaged all our partners to ensure that while they have the right of divestments, that there should be no situation where this will become a waterloo of our industry.

“Therefore, NNPC will ensure Nigeria’s strategic national interest is safeguarded by developing a comprehensive Divestment Policy that will provide clear guidelines and criteria for divestment of partner’s interest.”

Earlier, Mr Olatunji Akinwunmi, the Chairman, SPE, Nigeria Council, said it was in the interest of the country’s oil and gas industry to be in phase with the rest of the world regarding energy transition.