The Minister of State for Petroleum Resources (Oil), Sen. Heineken Lokpobiri, Ph.D, has reaffirmed that divestment plays a critical role in the energy sector.
When strategically implemented, he noted, it brings tangible benefits to Nigeria’s oil and gas industry.
Sen. Lokpobiri highlighted that the recent successful conclusion of long-standing divestment transactions under the #RenewedHope administration has led to significant gains — boosting crude oil production, strengthening local capacity, and encouraging international oil companies (IOCs) to shift their focus offshore.
In a statement issued by Nneamaka Okafor, SA Media and Communications, Sen. Lokpobiri made these remarks while welcoming a delegation from the Independent Petroleum Producers Group (IPPG), led by its Chairman, Mr. Abdulrazaq Isa.
The delegation visited to commend President Bola Ahmed Tinubu for his support of indigenous companies in securing recent landmark divestment deals.
The IPPG delegation highlighted several key transactions:
Oando Petroleum and Natural Gas Company Limited’s acquisition of NAOC from Eni;
Chappal Energies’ acquisition of Equinor Nigeria’s assets;
Seplat Energy’s acquisition of Mobil Producing Nigeria Unlimited (MPNU), a subsidiary of ExxonMobil;
Renaissance Africa Energy’s acquisition of Shell’s onshore assets.
“These once-stalled divestments are now completed and have resulted in measurable increases in our production levels,” the Minister stated. “This affirms our belief that divestment is aligned with our national interest — particularly in retaining value in-country and ensuring the long-term sustainability of the sector.”
The IPPG delegation also praised the President’s inclusive reforms in the energy sector, especially the appointment of IPPG members to key leadership roles.
Mr. Isa remarked, “We sincerely appreciate President Tinubu’s recognition of local capacity. His support has not only deepened indigenous participation but has also injected renewed momentum into the sector.”
In his closing remarks, Sen. Lokpobiri reiterated the Federal Government’s commitment to supporting indigenous companies in future divestment opportunities with IOCs.
“As I’ve often said, the success of IPPG is critical to our national goal of increasing production,” he stated.
He further stressed that “There is no substitute for boosting production. Those who have acquired these assets must be prepared to reactivate inactive wells. That is the path forward, and I am pleased to see that some operators have already begun this process.”
