Nigeria’s government is actively encouraging local companies to seize the opportunity to acquire onshore oil assets being divested by international oil companies, with Petroleum Minister Heineken Lokpobiri emphasizing that these acquisitions will drive investment and create wealth within the country rather than seeing profits flow overseas.
“Our conviction is that this country will grow better under Renaissance and the other companies that acquired Shell and Mobil. And I have also said more companies should try and acquire onshore and shallow water assets,” Minister Lokpobiri stated during a recent meeting with industry executives.
The government’s push comes as Renaissance Africa Energy completes its landmark $2.4 billion acquisition of Shell’s onshore assets, marking the end of the multinational’s century-long presence in Nigeria’s onshore sector. Similarly, Nigerian energy company Oando has acquired ExxonMobil’s assets, representing a significant shift in the ownership structure of Nigeria’s oil industry.
Minister Lokpobiri highlighted that profits previously sent to corporate headquarters abroad will now remain in Nigeria, benefiting the local economy and creating a new generation of Nigerian energy companies. During the meeting, Renaissance CEO Anthony Attah pledged to help Nigeria transition from energy poverty to energy security, with ambitions to eventually become Africa’s leading energy firm.
The government is requesting detailed roadmaps from the new asset owners, focusing on production increases and timeline plans. “Once we produce more barrels they will amount to more wealth,” Lokpobiri noted, adding that after years of stalled investments, reforms under President Bola Ahmed Tinubu’s administration are beginning to attract new capital to the sector.
Source: orientalnewsng.com
