January 21, (THEWILL) – The Federal Ministry of Petroleum Resources said the Nigerian government is not averse to Shell asset sales.
Nneamaka Okafor, the special adviser on media and communication to the Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, disclosed this in a statement in Abuja.
The Nigerian unit of London-based oil supermajor Shell Plc had announced last week that it struck a deal with a consortium of five companies, setting the scene for the latter to acquire its onshore business in the country.
The deal was sealed after years-long setbacks met by the company in its efforts to rid itself of the assets.
In the statement, Mr Lokpobiri affirmed the Nigerian government’s commitment to fostering a business-friendly environment in the country’s oil and gas sector.
Speaking on the sidelines of the World Economic Forum in Davos, Switzerland, the minister commented on Shell’s decision to sell its onshore assets to a consortium of five Nigerian companies.
Mr Lokpobiri emphasised that the Nigerian government will not impede legitimate business transactions in the oil and gas sector.
“On the part of the government, once we get the necessary documents, we will not waste time to give the necessary considerations and consent,” the statement quoted the minister as saying.
Responding to concerns about international oil companies (IOCs) diversifying their onshore assets, the statement said the minister highlighted the positive aspects of the diversification.
He noted that Nigeria loses nothing as such moves create opportunities for indigenous companies with the capacity to acquire and professionally manage these assets, leading to increased profitability and the maximisation of their potential.
Addressing potential negative impacts on the country, Mr Lokpobiri reassured that the diversification would not adversely affect Nigeria.
He emphasised the government’s engagement with IOCs regarding the decommissioning of non-productive assets and abandonment issues.
Mr Lokpobiri stated that concerns raised by IOCs, particularly with Nigerian banks, have been addressed.
“As a government, we will adhere to the law without jeopardizing legitimate businesses,” he added.
Responding to questions on preventing IOCs from diversifying their upstream operations, he clarified that companies have not left their upstream deepwater assets.
Instead, he said, they are diversifying their onshore assets, creating opportunities for local companies with developed capacity and financing to acquire and profitably manage these assets.
He reiterated the government’s commitment to addressing sector concerns, including insecurity and ageing infrastructure, such as pipelines.
About the Author
