Senator Heineken Lokpobiri, Minister of State for Petroleum (Oil), has affirmed that the ongoing divestment in Nigeria’s oil sector serves the national interest. He emphasized the crucial role of indigenous companies and the Federal Government’s support in these transactions.
During a meeting with the Independent Petroleum Producers Group (IPPG), led by Chairman Abdulrazaq Isa, Lokpobiri highlighted that long-delayed divestment transactions, now finalized under President Bola Tinubu’s administration, have significantly increased crude oil production.
Lokpobiri described divestment as a key element of the energy business, stating that when strategically implemented, it provides substantial benefits to Nigeria’s oil and gas sector. These benefits include increased local capacity and sector expansion as International Oil Companies (IOCs) transition to deep offshore operations.
“These divestments, once stalled, are now completed and have led to a measurable increase in our production levels,” Lokpobiri stated. “They validate our position that divestment is in our national interest — especially for in-country value retention and sustainability in the sector.”
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Lokpobiri reiterated the Federal Government’s commitment to supporting indigenous companies in future divestment engagements with IOCs, stating, “As I’ve always said, the success of IPPG is the success of our national quest to ramp up production. There’s no alternative to increasing production. Those who have acquired these assets must re-enter inactive wells. That’s the way forward, and I am happy that some of them have already begun the process.”
IPPG Chairman Isa thanked President Tinubu for supporting indigenous companies in recent divestment deals, including 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, and Renaissance Africa Energy’s acquisition of Shell’s onshore assets.
Isa also commended Tinubu’s inclusive energy sector reforms, particularly the appointment of IPPG members to strategic leadership roles, noting, “We deeply appreciate President Tinubu’s recognition of local capacity. His support has not only deepened indigenous participation but has also infused fresh momentum into the sector.”
