Petroleum Resources Minister (Oil), Heineken Lokpobiri, has assured that major international oil companies (IOCs) such as Shell, ExxonMobil, and others won’t be exiting Nigeria amidst ongoing divestment transactions.

Speaking at the African Energy Week in Cape Town, South Africa, Lokpobiri clarified that these divestments signify a strategic shift, not an exit. He explained that IOCs are choosing to focus on offshore operations instead of leaving Nigeria altogether.

The Minister emphasized that none of the IOCs or independent operators he has spoken with have shown any intention of leaving the Nigerian market.

Instead, they are prioritizing offshore projects to avoid the challenges associated with onshore operations near local communities, as these offshore environments provide more stability and security.

“Let me say this. I interact with all the companies. IOCs, service providers, independent operators, marketers none of them are leaving Nigeria. I want to use this opportunity to assure the world that no company is leaving Nigeria.

“All those divesting are going into deep offshore because they don’t want to contend with the local issues that they have been contending for the past 70 years.

“The onshore and shallow water assets that they have been operating all these years, they want to leave them to the indigenous operators and go deep offshores.

“No company is leaving Nigeria because some people have the impression that companies are leaving. They are going to deep offshore beyond the capacity of the local players,” Lokpobiri said.

Lokpobiri also underscored that indigenous energy companies acquiring these onshore assets are well-prepared to handle them effectively.

He highlighted that firms like Seplat and Oando Plc, which have long partnered with IOCs, have shown significant capability in managing these assets.

Furthermore, he assured that Nigeria would continue to benefit from royalties, taxes, and capital inflows despite the divestments.

“Let me start with the merger and acquisitions going on. I will use this opportunity to assure the rest of the world that Nigeria is just like any other country in the world.

“Some will bring their capital to invest and there will be some divesting. We are not against divestment. I always contend have enormous capacity in our indigenous company.

“Seplat is an indigenous company that bought ExxonMobil. Similarly, Oando is a very serious company that NAOC. These companies have grown with enormous capacity.

“Even before the divestment, most of these companies have Nigerians as their field operators. The expatriates are only just in the office to oversee what’s going on.

“So, Nigeria will have nothing to lose in terms of royalties, taxes, and the way these things are professionally run.

“They have nothing absolutely to lose. It creates another opportunity for Nigerians to actually show themselves,” Lokpobiri concluded. (Nigerian Tribune)