Why Oil Companies Are Leaving Nigeria-Kyari

Why Oil Companies Are Leaving Nigeria-Kyari

International oil companies are leaving Nigeria and shifting their portfolios to where they can add value to the journey towards carbon net-zero commitment, the group managing director, Nigerian National Petroleum Company (NNPC) Limited, Mele Kyari, has said.

Mr Kyari said this in a speech at the 2022 Nigerian International Energy Summit (NIES2022) in Abuja on Monday.

Last year, Royal Dutch Shell announced its plan to offload onshore Nigerian oil assets in a bid to move to cleaner energy.

It said it was discussing with the federal government to sell its onshore oil assets in the country.

Also, Seplat Energy last week announced it has entered into a contract with Exxon Mobil, to buy Mobil Producing Nigeria Unlimited’s entire oil assets in Nigeria. That includes all of Exxon’s entire shallow water assets in the Niger Delta.

“Companies are divesting. They are leaving our country. That is the best way to put it,” Mr Kyari said.

“They are not leaving because opportunities are not here but because companies are shifting their portfolios where they can add value and not just that, but where they can also add to the journey towards carbon net-zero commitment.”

He said that transition must have sanity, and there must be justice in the energy transition.

He said the country must have “the most friendly fuel” in place in the next five to 10 years, while building its ability to use renewables.

Nigeria is getting “there” sooner than we think. Niger Delta will soon become an Enugu with coal but no mining activity. Revenues will fall. Foreign loans service will become a challenge. Most civil servants, not only ASUU, will go on strike at Federal and State levels as federal allocation will deplete. Unemployment and criminality will increase. We must task our governments to think and produce contingent post-oil plans. Smell the coffee!