Mkpoikana Udoma
Port Harcourt — The Federal Government has declared that recent oil asset divestment deals, concluded under President Bola Ahmed Tinubu’s administration, have resulted in a measurable boost to Nigeria’s crude oil production output.
Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, made this known while receiving a delegation of the Independent Petroleum Producers Group, IPPG, led by its Chairman, Mr. Abdulrazaq Isa, in Abuja.
“Divestment is part of the energy business, and I am pleased to note that under the Renewed Hope administration of President Bola Ahmed Tinubu, we have successfully concluded several divestment deals that had lingered for years.
“These completions have led to a measurable increase in our national production output, demonstrating clearly that divestment, when properly structured, is in our best interest,” Lokpobiri said.
The Minister emphasized that most of the international oil companies, IOCs, are not exiting Nigeria but are instead shifting their focus to deepwater assets, which still benefits the country.
“When such divestments are not entirely out of Nigeria but rather a shift to deepwater operations, it becomes a win-win for us on all fronts,” he noted.
Lokpobiri commended the IPPG for their commitment and applauded President Tinubu for ensuring that indigenous operators were included in the divestment deals, thereby promoting local capacity in the oil and gas sector.
“I reiterated the Federal Government’s commitment to supporting indigenous companies in future divestment engagements with IOCs,” he said.
He, however, stressed the need for the new asset owners to swiftly re-enter inactive wells to ramp up production.
“There is no alternative to increasing production than for those who have acquired these assets to re-enter inactive wells. This is the way forward, and I am happy that some of them have already begun the process.”
He urged the IPPG members to remain aligned with government reforms as the administration intensifies efforts to transform Nigeria’s energy sector.
The IPPG delegation, led by Mr. Abdulrazaq Isa, was in Abuja to express appreciation to President Bola Ahmed Tinubu for supporting indigenous producers in acquiring divested assets and for broader inclusion in energy sector reforms.
