Nigerian oil companies have acquired about 26 oil mining licenses within the Niger Delta basin space within the final decade.
This was revealed by (*10*) Secretary, Nigerian Content Development and Monitoring Board, Engr. Simbi Wabote on the 2023 Petroleum and Natural Gas Senior Staff Association Energy and Labour Summit in Abuja.
Wabote stated a number of the divestments presently on the playing cards included these deliberate by Shell and ExxonMobil to promote oil and gasoline property price billions of {dollars}, along with Eni’s announcement in September of an settlement with Oando Plc for the sale of NAOC pursuits in six onshore blocks and Okpai gasoline energy plant in Delta (*26*).
He emphasised that divestments of oil property are usually not essentially unfavourable, somewhat, they current an avenue for the native capacities and capabilities which were developed by means of native content material implementation to be dropped at bear within the upstream sector.
Wabote outlined a number of alternatives that will accrue from divestments, such because the injection of latest capital, the rejuvenation of divested property, and a rise in crude oil manufacturing by means of the funding in applied sciences by the buying companies.
Other direct advantages are the creation of direct and oblique employment alternatives by the indigenous firms and their service suppliers.
He reiterated that the divestments affirm that Nigerians and indigenous firms have come of age and have acquired the technical, managerial, and monetary capabilities to play within the “big league”.
He added that “the involvement of our financial institutions on the transactions represents means of efficient capital deployment and capacity building on loans syndication on an international scale. This is also applicable to legal services, insurance, government relations, employee relations, community liaison, and others.”
Aside from the alternatives, the NCDMB boss equally highlighted challenges encountered within the divestment workout routines.
According to him, the challenges revolved across the time required to get essential regulatory approvals in addition to the substantial pursuits from numerous teams masking political, authorized, communities, and labour.
Among different challenges are the potential for the disruption of oil and gasoline manufacturing, job losses, in addition to entry to newest expertise particularly if the brand new traders lack the technical experience or don’t have any assist from authentic gear producers.
He additionally highlighted points round the way to handle legacy points or liabilities associated to the atmosphere, communities, and different social commitments and strain on new traders to recoup investments on time to offset loans and handle different monetary necessities.
The NCDMB boss assured that the Board would proceed to accomplice with trade stakeholders to institute rules that will be sure that the rising footprints and stakes of indigenous oil and gasoline manufacturing firms wouldn’t result in a discount in Nigerian content material compliance.
Olusola Akintonde/Punch
