NIGERIA: NNPC to Develop Divestment Policy

 

  • NNPC to develop a divestment policy
  • To reposition the sector following multiple divestments of IOCs
  • Reputable investors to take over the divested portfolios

The Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Mele Kyari, has said the Federal Government (FG) would develop a comprehensive divestment policy for International Oil Companies (IOCs) operating in the country. This comes as there have been several divestments by IOCs in recent times.

Speaking at the 2021 Society of Petroleum Engineers (SPE) Nigeria Annual International Conference and Exhibition (NAICE), Kyari said, ”We have seen a whole wave of divestments by major IOCs operating in our country.” ”NNPC as their major partner cannot stop partners from divesting their interests. We can’t do this because we all have the right to migrate our portfolios depending on the circumstances.”Kyari stated.

”The divestments create challenges for us in ensuring that we get right and competent investors to take position and add value to the industry,” he added.

Kyari stated the FG would develop a divestment policy and ensure that only competent investors with technical, financial and operational capabilities will take over divested assets.

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