‘IOCs’ divestment good for economy’

IOCs30 May 2014, Lagos – The Petroleum Club, an organisation of multinational and indigenous players in the oil and gas industry, has described the oil assets divestment by the international oil companies (IOCs) as good for the local investors who acquired the oil fields.

The outgoing Chairman of club, Mr Uduimo Itsueli, spoke at its Annual General Meeting (AGM) in Lagos.

He said: “Frankly speaking, we are the one gaining from this divestment. We should understand the fact that when one company is leaving and a Nigerian company is taking over, we are not losing anything. All these IOCs employed Nigerian engineers; our people know these oil fields.

“It is our people and not expatriates were the geologists. It is Nigerians that drilled the fields. Nigerians know the field inside out, what we need is to find finance. So we are not losing but gaining.”

He said before the divestment, the contribution of indigenous production to the 2.5million barrels per day was just three per cent but with Seplat, Niger Delta Petroleum Company and the marginal fields’ operators, the contribution has increased to about nine per cent.

He said: “By the time we see another set of divestments in the next three to five years, the percentage of contribution from indigenous players will grow to 20 per cent. The idea will be for indigenous companies to keep moving their production volume so that in the next 10 years, we see indigenous companies producing 40 per cent. This will create more jobs for our people.”


– The Nation

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