The Independent Petroleum Producers Group (IPPG), has said its members have developed adequate technical and financial capabilities to acquire and continue production from onshore oil fields divested by international oil companies, IOCs.
Chairman of the group and chief executive officer of Waltersmith, Abdulrazaq Isah, while speaking at the 2022 Nigeria Oil And Gas Conference(NOG), in Abuja last week, disclosed that, in the last two decades, the number and contribution of indigenous players, largely due to Government’s initiatives and IOC divestments, has significantly increased.
Isa, said, the theme of this year’s conference – “Funding the Nigerian Energy Mix for Sustainable Economic Growth” underscores the importance of repositioning the industry in the face of the ongoing global energy transition laced with multifaceted global issues.
He stated further that the enactment of the Nigerian Oil and Gas Industry Content Development Act (NOGICD Act) in 2010 has further supported the emergence of stronger indigenous oil & gas companies and complemented the Government’s empowerment agenda.
“This trend must be further supported and sustainably nurtured. It is the sure way to achieve energy availability, affordability and security for all Nigerians” he said adding that the IOC divestments in 2010 ushered in a period of significant growth both for the Nigerian Petroleum industry and for the indigenous players in terms of overall contribution to the nation’s oil and gas production -translating to a net contribution from as low as 3 per cent in 2007 to about 16 per cent within a decade.”
He said: “today, we are in the thrust of another wave of IOC divestments with industry commentators and stakeholders alike expressing concerns and raising a pertinent question – “are indigenous players equipped and able to fill the void post IOC divestments?”
“Not only am I here to give a resounding YES to that question but to also allay concerns and highlight why indigenous players are best placed, with the collective support and deliberate collaboration with the Government, Industry Regulators and Nigerian Financial institutions working in concert, to optimise the numerous opportunities on offer by the divestment activities.”
Isa, stated that the first phase of divestments demonstrated that indigenous E & P companies are capable of stepping up and performing at the highest level.
He went further to assure that the onshore and shallow water assets being transferred in the course of these divestments by the IOCs are in safe hands with the indigenous Exploration & Production, E&P, companies.
To date, he said, IPPG members have a proven track record of performance and remain best placed to guarantee a steady flow of investments in adding value to these divested assets.
“An aggregate of over $20 billion has been spent on acquisition plus capital expenditures in the past ten (10) years to grow the divested assets. In addition, some of our members have demonstrated an appetite for supporting the Government’s energy security vision by building a broader value-adding midstream and downstream business.
“Overall, our members have deployed unique capabilities in operations which have minimised incidences of community disruptions and enhanced impactful community engagement models. IPPG strongly believes indigenous players have the
technical and financial capability to realise the Government’s aspirations for the sustainable growth of our industry.” added Isa.
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