Business
NNPC Gives IOCs Conditions For Divestment From Nigeria
Published
4 years agoon
By
Editor
The Group Managing Director of Nigerian National Petroleum Company Limited (NNPC), Mallam Mele Kyari, has said international oil companies (IOCs) that divest from Nigeria’s upstream sector must address issues of abandonment and decommissioning of oil assets.
Kyari said this on Monday in Abuja, at the opening session of the fifth edition of the Nigerian International Energy Summit.
The comment by the NNPC boss comes about six months after he had highlighted key guidelines that would guide the evaluation of would be replacement of divesting partner in the oil and gas industry.
The GMD had in August last year, while speaking at the Nigeria Annual International Conference and Exhibition said learning from previous experiences, the NNPC had developed requisite divestment policy that will provide clear guidelines and criteria for divestment of partners’ interest in all its joint venture and production sharing contracts arrangements.
To ensure that the NNPC sustains a prosperous business environment for Nigeria, he had said the national oil company would pay particular attention to abandonment and relinquishment costs; severance of operator staff; third party contract liabilities; and competency of the buyer.
READ ALSO: NNPC Distributes One Billion Litres Of Fuel Nationwide
On the wave of divestment of international oil companies from Nigeria’s upstream sector, the NNPC boss told participants at the conference that while the country understands the right of companies to freely divest, it was, however, critical to ensure that the right thing is done so as to avoid disruption.
He further said that issues and obligations related to abandonment and decommissioning must be fully addressed and discharged in line with global best practices, regulations, convention, and law. He said,
“Companies that are divesting, they are leaving our country literarily and that’s the way to put it. But they are not leaving because opportunities are not here, these companies are shifting their portfolios where they can add value and not just that but where they can add to the journey of net carbon zero emission.
“We understand this very perfectly. But also, we cannot afford to realise that this country must benefit from the realities of today.
“We will work with our partners, we understand the necessity for their investments, we do know that there are issues, we understand that this must take place, but also it must be done in such a way that we are able to deal with issues around abandonment and decommissioning.
“We will also make sure that whatever arrangement that is put in place, will show that we are also alive to the energy transition journey that we have embarked on.”
The NNPC CEO acknowledged the need for cleaner energy globally, but said that the African continent must shape its narrative to reflect on its realities, including the high level of energy poverty, deficiency of critical infrastructures for electricity and transportation.
He confirmed that NNPC with partners were working together to ensure the attainment of Nigeria 2060 target for carbon neutrality.
He gave some of the measures so far taken to include adoption of low carbon technology across operations, deepening natural gas utilisation to reduce energy poverty – via the National Gas Expansion Programme, and intensifying the use of petrochemicals.
He also stated that the NNPC was making concerted efforts in the gas sector through various projects – NLNG Train 7, AKK, OB3, ELPS and others. He added that the expansion and integration of domestic/ regional power grids and growing the domestic gas markets via Autogas/ Compressed Natural Gas/ Liquified Petroleum Gas to power vehicles remain key to revitalising the industry.
He noted that passage of the PIA remained a key enabler and laudable reform in the Nigerian energy sector clearly delineating various stakeholders’ roles to enhance value realisation in the sector.
The NNPC GMD explained further that government has also intensified policies to increase gas utilisation and eliminate flaring in recognition of the transition from carbon intensive production towards cleaner alternatives.
Within the last decade, the Nigerian upstream sector had witnessed significant transactions involving the sale of interests in oil licences.
Some of these transactions were concluded in the time of high oil prices and in some instances involved asset transfers from international oil companies with long years of carrying on exploration and production activities in Nigeria, to smaller indigenous companies with limited experience in the upstream sector.
Expectedly, decommissioning obligations and the potential liabilities are also transferred to the new holder of the licence.
In August last year, Shell launched divestment of its 30 percent stake in Shell Petroleum Development Company of Nigeria Limited subsidiary.
Few days ago, Seplat Energy Plc announced an agreement to acquire the entire share capital of Mobil Producing Nigeria Unlimited from Exxon Mobil Corporation, Delaware for $1.28 billion.
READ ALSO: Reps Probe Petrol shortage, Fault NNPC Sufficient Supply Claim
The transaction entails the acquisition of ExxonMobil Nigeria’s entire offshore shallow water business. According to the deal, ExxonMobil Nigeria’s shallow water business is an established, high-quality operation with a highly skilled local operating team and a track record of safe operations, producing 95 kboepd in 2020 (92 percent liquids).
Shell Petroleum Development Company of Nigeria and ExxonMobil are presently faced with huge remediation costs over their failure to properly decommission and cap oil and gas assets across the Niger Delta, especially the ones sold to Nigerians in recent divesture programmes.
The situation has created severe environmental risks and pollution to host communities in the oil-rich Niger Delta.
The recent case of Aiteo’s Nembe wellhead blowout has also brought to the fore the need to enforce the relevant laws and to ensure that the multinationals that sold the assets to the Nigerian companies pay remediation charges.
Findings revealed that many of the oil and gas assets sold to Nigerians, mostly by the international oil companies, are rarely decommissioned or properly abandoned, a development that clearly breaches existing laws regulating the industry.
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Business
Dangote Fuel Sells Cheaper In Togo Than In Nigeria – Falana Laments
Published
11 hours agoon
September 15, 2025By
Editor
Human rights activist Femi Falana, SAN, has lamented that fuel taken from Dangote is cheaper in Togo than in Nigeria.
Falana expressed his concerns on Sunday while responding to questions in an interview on Politics Today, a programme on Channels Television.
He urged the federal government to review the proposed 5 per cent fuel surcharge and ensure that further hardship is not imposed on Nigerians.
READ ALSO:Dangote Refinery Reduces Fuel Price Nationwide, Provides Update On Petrol Distribution
“I guess the government wants to go back to the drawing table and ensure that it is not accused of multiple taxes or double taxation because consumers will pay VAT for buying fuel. They will now put an additional 5 per cent tax.
“I think this is what Nigerians are complaining about. And from what we just read today is that the Dangote fuel taken from Nigeria is now cheaper in Togo than in Nigeria I think about 65 naira.
“So, the government will have to review these developments (the proposed 5 per cent fuel surcharge) and ensure more hardship is not imposed on Nigerians,” he said.
Business
Falana Reveals Those Behind Subsidy Removal
Published
11 hours agoon
September 15, 2025By
Editor
A Senior Advocate of Nigeria, Femi Falana, has once again criticised President Bola Tinubu’s removal of the fuel subsidy.
Speaking in an interview on Sunday’s Politics, a programme on Channels Television, the human rights activist stated that no country in the world has completely abolished subsidies.
“There’s no way you can remove subsidy completely. No country in the entire world has abolished subsidies completely.
READ ALSO:Tinubu Subsidises Kidney Dialysis Cost By 76% In Federal Hospitals
“Even leading Western countries like the United States, the United Kingdom, France and others subsidise electricity, agriculture, and many aspects of the lives of their people.
“So, when the Nigerian Government said it was removing subsidies, as a matter of fact, if I must say this, it was the World Bank and the International Monetary Fund, IMF, that insisted that the government must remove all subsidies,” he said.
Business
‘We Like Greek Gifts,’ Nigerians Blast NUPENG Over Dangote’s Fuel Price Reduction
Published
2 days agoon
September 13, 2025By
Editor
The decision of the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG) to warn Nigerians against accepting Dangote Refinery’s recent fuel price reduction has drawn heavy backlash on social media, with many citizens mocking the union and embracing what they described as “much-needed relief.”
Dangote had announced lower petrol pump prices in several states alongside a new scheme to deploy compressed natural gas (CNG) trucks directly to filling stations, a move expected to reduce logistics costs.
But NUPENG dismissed the offer as a “Greek gift,” alleging that the refinery was undermining workers’ rights, sidelining the union, and pushing drivers into a rival association.
However, netizens have lambasted the union, querying that during hard times, NUPENG has never supported the masses.
On X (formerly Twitter), Nigerians quickly turned NUPENG’s warning into a trending topic, using humour and sarcasm to lampoon the union.
READ ALSO:NUPENG Accuses Dangote Of Breaching Agreement, Says Nationwide Strike Inevitable
Oloye Somorin Osifeso (@OloyeSomorin) wrote: “We like Greek gifts in my garage.”
Just Jude (@JustJude) asked bluntly: “Is it your deception?”
Oladele (@Oladele) quipped: “As Dangote Refinery dey offer Nigerians Greek gift, why can’t NUPENG too offer Nigerians French gift?”
Agbalaka (@Agbalaka) queried: “Can they tell Nigerians what exactly they are fighting about?”
CBN Gov Akinsola (@Akinsola) joked: “Then give us Trojan gift now 😆. Man do man. Man no go vex.”
Omobalaji (@Omobalaji) teased: “NUPENG, oya surprise us with Arabian gifts.”
READ ALSO:Union Gloves vs Corporate Fists: The Dangote–NUPENG Showdown
Habdulakeem Bahdmus (@BahdmusHabdulakeem) added: “If Dangote is showering Nigerians with Greek gift, NUPENG can also set up a Roman gift now.”
Femi Yekinni (@FemiYekinni) steered it back to reality: “We thank them for their advice. Now, @DangoteGroup pls how do we schedule deliveries to Badagry?”
Curtis Abbi (@CurtisAbbi) slammed the union: “Nigerians will manage the Greek gift. @officialNUPENG9, what gift have you given Nigerians in your entire years of existence? NUPENG should offer Nigerians their own Somalian gift 🤣.”
Akin Adejola (@AkinAdejola) echoed the sentiment: “LOL. I can bet Nigerians don’t mind the gift. NUPENG should gift Nigerians same ‘Greek gift’ too if they have any goodwill. NUPENG is the enemy of progress in the oil & gas sector.”
READ ALSO:NUPENG Tanker Drivers Announce Strike Over CNG Trucks Dispute
Adeola Akinwande (@adeolarewaju9) criticised union leaders: “Does NUPENG remember Nigerians at hard times? They have all failed Nigerians the same way the @NLCHeadquarters has failed. They are living big on unionism and cashing out big time. Without unionism, some of their excos are nobody. They should stop the crocodile tears.”
Okunwa U. U. Azikiwe (@OkunwaUUazikiwe) argued: “Competition has created jealousy by the previous monopoly in the sale of fuel. They have lost control, and it is paining them that they are no longer in control. SMH!!!”
Solihull Abdulkareem (@SolihullAbdul) chipped in: “NUPENG or whatever, do you want the market to be monopoly? You’ve been doing what you want for many years. It’s time for change, just accept it and move forward.”
Temidayo (@Temidayo) asked: “It’s a lie. What benefits has your union provided for Nigerians? Middlemen syndrome has been room for corruption. Your association should go and buy shares in Dangote and work together to make Nigeria great.”
And LegalTech Sam Akanbi (@SamAkanbi) summed up: “Nigerians no longer want your Nigerian gift, we want the Greek gift. If you have a better offer, we’d abandon Dangote’s Greek gift and take yours. But for now, let the Greek gift go round.”
READ ALSO:NUPENG Mobilises Tanker Drivers, Petrol Attendants, Others For October 3 Strike
Recall that NUPENG earlier alleged that Dangote Refinery was forcing truck drivers to abandon its union for a rival group, the Direct Trucking Company Drivers Association (DTCDA).
The union also accused Dangote of undermining collective bargaining rights and violating a Memorandum of Understanding (MoU) signed under government supervision.
Dangote, however, denies the claims, insisting that union membership remains voluntary and that its delivery scheme is designed to cut costs and ease supply.
The federal government has intervened, with the Ministry of Labour and the Department of State Services mediating between both parties.
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