Onwubuke Melvin
The Nigeria Extractive Industries Transparency Initiative has committed to enhancing transparency in the oil and gas sector by reviewing recent divestments by international oil companies.
NEITI stated that the comprehensive review will assess every stage of the divestment process, which involves the transfer of 26 oil blocks valued at $6.03 billion by five IOCs.
NEITI Executive Secretary, Ogbonnaya Orji, disclosed this during a briefing on the implementation of the Extractive Industries Transparency Initiative in Nigeria.
The transactions include major sales, such as Shell to Renaissance for $2.4 billion, ExxonMobil to Seplat for $1.28 billion, and TotalEnergies to Chappal for $860 million.
In 2024, the Nigerian Upstream Petroleum Regulatory Commission approved requests from IOCs to transfer their assets to local investors.
Orji, during the briefing, noted that these divestments are reshaping Nigeria’s oil and gas industry, emphasizing the need to ensure due process is followed.
He stated that NEITI would enhance collaboration with the Nigerian Upstream Petroleum Regulatory Commission and the Nigerian National Petroleum Company Limited to ensure full disclosure of the financial, social, and environmental aspects of the divestments.
He added, “Oil and gas divestments are reshaping Nigeria’s industry. NEITI recognizes the urgent need for transparency in these transactions to protect national interests, host communities, and revenue flows. To achieve this, NEITI will expand industry reports to include dedicated sections on divestments.
“Strengthen collaboration with NUPRC and NNPC Ltd. to ensure full disclosure of financial, social, and environmental aspects of divestments. Also, NEITI will intensify collaboration with NNPC Ltd. and other government agencies to disclose forward sales data (pre-sales of crude oil and gas) which impact government revenues and fiscal stability.”
Orji also mentioned that NEITI would broaden its scope to ensure transparency in the forward sales of oil and gas.
Emphasizing the need for due process and proper environmental remediation in these transactions, he expressed concerns about unresolved environmental issues in oil-producing communities.
He called for collaboration with regulatory bodies, including the NUPRC and the Ministry of Environment, to ensure transparency and enforce accountability for clean-up costs and remediation efforts.
Orji also voiced concerns that some divestments might not have adequately addressed environmental issues raised by oil-producing communities.
