The Minister of State for Petroleum Resources in Nigeria, Heineken Lokpobiri, has expressed optimism about the opportunities that arise for local players as Shell completes its exit from Nigeria’s shallow water fields.
According to Lokpobiri, the development provides a chance for indigenous companies to take charge, keeping their funds within Nigeria, unlike international oil companies (IOCs).
Speaking to the Arise TV crew on the sidelines of the World Economic Forum in Davos, Lokpobiri highlighted that companies are unwilling to depart from Nigeria entirely within the oil sector.
Instead, he noted a trend of diversification, with many focusing on offshore assets.
He emphasized that Shell’s departure would not result in any loss for Nigeria, pointing out that local players have developed the capacity to acquire, manage, and operate these assets proficiently and profitably.
Lokpobiri stated, “No company is willing to leave, not even ENI. No company has said that we are leaving Nigeria.
“We lose nothing, and the local players have also developed so much capacity to an extent that they can acquire these assets, run them professionally and profitably, so Nigeria does not lose anything.”
He said the situation is an opportunity for local players to take over assets and operate them, ensuring that the generated revenue stays within the country, in contrast to IOCs repatriating funds abroad.
He added, “We lose nothing in terms of jobs, in terms of accruals to the government; we lose nothing.”
Earlier this week, Shell sold its onshore oil assets in Nigeria for $1.4 billion. The assets were sold to a group of Nigerian oil companies for $1.3 billion.
International Oil Companies, including Shell, have decided to shift their focus from shallow water oil fields to deep water oil fields. This move is due to ongoing issues in the Niger Delta, such as insecurity, theft of crude oil, vandalism of pipelines, and conflicts with local communities.
