NNPC Says No Cause for Alarm on IOC Divestment

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The Nigerian National Petroleum Corporation (NNPC) has dismissed insinuations in some quarters that the recent spate of divestments from certain onshore oil blocks by some international oil csompanies (IOC) may lead to crisis in the nation’s oil and gas industry.Speaking to journalists on the margins of the ongoing World Energy Congress in Daegu, South Korea, Group Managing Director of the Nigerian National Petroleum Corporation, Engr. Andrew Yakubu, explained that the reported divestments are not only healthy for the oil and gas industry in Nigeria but would also go a long way in promoting effective indigenous participation in core upstream activities.“These are not withdrawals in the real sense of withdrawals. The fact is that a number of these IOCs are moving into more challenging frontiers in the deep offshore and are leaving the onshore blocks which they considerless challenging,” he said .The NNPC GMD noted that the major players that are divesting have actually been sitting on those acreages and have allowed them to go fallow for years without significant development.“So it is only fair for them to release these blocks so that others, especially the indigenous operators can have the blocks and grow in the upstream …

Source: Pointblank News

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