The Federal Ministry of Petroleum Resources said the Nigerian government is not averse to the sale of Shell assets.
This was revealed on Thursday by Nneamaka Okafor, Special Adviser on Media and Communication to the Minister of State for Petroleum Resources (Petroleum), Heineken Lokpobiri, in a statement.
The Nigerian unit of London-based oil major Shell Plc announced on Monday that it had reached a deal with a consortium of five companies, paving the way for the latter to acquire its onshore business in the country.
The deal was sealed after years of setbacks the company suffered in its efforts to divest assets.
In his statement on Thursday, Lokpobiri affirmed the Nigerian government’s commitment to fostering a business-friendly environment in the country’s oil and gas sector.
Speaking outside the World Economic Forum In Davos, Switzerland, the minister addressed Shell’s decision to sell its onshore assets to a consortium of five Nigerian companies.
Lokpobiri stressed that the Nigerian government will not impede legitimate business transactions in the oil and gas sector.
“On the part of the government, once we obtain the necessary documents, we will not waste time in giving the necessary considerations and consent,” the minister was quoted as saying.
Responding to concerns about international oil companies (IOCs) diversifying their onshore assets, the statement said the minister highlighted the positive aspects of diversification.
He noted that Nigeria loses nothing as such measures create opportunities for local companies with the capacity to professionally acquire and manage these assets, leading to greater profitability and maximization of their potential.
Addressing the possible negative impacts on the country, Lokpobiri assured that diversification would not negatively affect Nigeria.
He highlighted the government’s commitment to IOCs in relation to the decommissioning of non-productive assets and abandonment issues.
Lokpobiri stated that concerns raised by IOCs, particularly with Nigerian banks, have been addressed.
“As a government, we will comply with the law without endangering legitimate businesses,” he added.
Responding to questions on how to prevent IOCs from diversifying their upstream operations, he clarified that the companies have not abandoned their deepwater upstream assets.
Instead, he said, they are diversifying their onshore assets, creating opportunities for local companies with developed capacity and financing to profitably acquire and manage these assets.
He reiterated the government’s commitment to addressing sector concerns, including insecurity and aging infrastructure such as pipelines.