IOC Divestments Positive for Nigeria –Lokpobiri

Minister of State for Petroleum Resources, Heineken Lokpobiri, has reassured the nation that the Federal Government has nothing to fear despite ongoing divestments by international oil companies (IOCs). Speaking at the Nigerian Content Development and Monitoring Board’s PNC conference in Yenagoa, Bayelsa State, Lokpobiri noted that the IOCs’ shift from onshore and shallow water assets to deeper offshore fields was not a sign of their departure from Nigeria, but rather a strategic relocation.

“The divestments we are witnessing are not an indication of companies leaving Nigeria; they are simply moving from onshore and shallow waters to deep offshore,” Lokpobiri said. He further revealed that the assets being vacated by the IOCs are being taken over by local operators, a development he described as a testament to Nigeria’s growing capacity in local content development.

According to Lokpobiri, the divestments are a positive sign for the country, with local companies stepping in to manage and sustain operations. He added that the shift did not affect Nigeria’s ability to generate revenue through royalties, taxes, and the quality of services provided.

The Minister’s comments come amidst growing concerns about the future of Nigeria’s oil sector, with some observers fearing the potential loss of foreign investment. However, Lokpobiri was confident that the country’s achievements in local content development over the past decade would continue to ensure its stability and growth in the face of these changes.