Opposition is building among youths and stakeholders in the Niger Delta over plans by Eni to divest its five per cent stake in the Renaissance Joint Venture (JV), with calls for Federal Government intervention and warnings of resistance if concerns are not addressed.

The stake, estimated at between $400 million and $500 million, has attracted interest from local and international investors. However, indications that the transaction may favour the Sandesara brothers, owners of Sterling Oil Exploration and Energy Production Company (SEEPCO), have drawn criticism from host communities.

The divestment process, being handled by Lazard, is reported to require bidders to provide 100 per cent of the bid value upfront—a condition stakeholders say could restrict participation and favour firms with significant liquidity.

The Niger Delta Transparency Forum said the proposed sale raises concerns about the suitability of the prospective buyer. In a statement signed by its Secretary-General, Ebikade Moses, the group alleged that SEEPCO had faced repeated complaints from indigenous contractors over its business practices.

“We are calling on the Federal Government to look into this matter of urgent national importance. The entire Niger Delta youth are unhappy and will resist this move. Stakeholders are not comfortable with handing over such assets to companies that have shown disregard for local content and community engagement,” the statement said.

Concerns were also raised over the operations of First Hydrocarbon Nigeria, a company linked to SEEPCO, which stakeholders claim has outstanding royalty obligations and compliance issues with the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).

Stakeholders further alleged that the company had reduced local workforce participation, replacing Nigerian employees with expatriates—a development they said runs contrary to the Federal Government’s local content policy.

Industry observers note that the reaction reflects broader concerns in the Niger Delta, where communities have long complained of marginalisation despite decades of oil production. The ongoing divestment by international oil companies has heightened concerns that asset transfers may not lead to improved accountability or increased benefits for host communities.

The Renaissance JV was previously held by the Nigerian National Petroleum Company, Shell, TotalEnergies, and Eni, with Shell and TotalEnergies having exited their stakes in recent years.

Analysts warn that failure to address community concerns could disrupt oil operations, underscoring ongoing challenges in relations between operators and host communities in the Niger Delta. (The Sun)

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