International Oil Companies Divest Over $6 Billion in Nigerian Assets Amid Security Concerns and Energy Transition
Growing insecurity and the global shift to cleaner energy have been identified as major factors contributing to asset divestment by operating international oil companies in Nigeria. More than $6 billion in onshore and shallow-water assets have been divested by these companies since the advent of the Petroleum Industry Act in 2021, driven by security risks and the global transition towards cleaner energy.
Pedro Omontuemhen, Partner at PwC Nigeria, speaking during an economic outlook lecture hosted by the Lagos Chamber of Commerce and Industry in Lagos, identified continued divestment of assets by international oil companies and the coming on board of Dangote Refinery as factors responsible for the rising dominance of indigenous companies in the sector. He stated that the advent of Dangote Refinery has fundamentally shifted the country from fuel importer to self-sufficient refiner, with indigenous companies now enjoying 55 percent of oil production share, compared to the international oil companies’ 45 percent.
He lamented that despite its centrality to the nation’s economic growth, the oil and gas sector remains constrained by security risks, infrastructure gaps, and softer investment conditions. Since 2016, Nigeria has only attracted four percent of total oil and gas investments in Africa, despite holding 33 percent of the continent’s gas reserves, while major oil companies have committed over $82 billion to projects in other countries since the country’s last deepwater project reached final investment destination in 2013.
Source: orientalnewsng.com
