Yemisi Izuora
The Nigerian Content Development and Monitoring Board, NCDMB, has engaged the media to help propagate and promote key achievements of indigenous oil companies in the country’s energy industry.
Speaking at a breakfast meeting with the Guild of Corporate Online Publishers, GOCOP, in Abuja, themed, “Sustaining Nigerian Content Amidst Divestments to Indigenous Oil Companies: The Role Of The Media.” Executive Secretary of the Board, Simbi Wabote, said the Agency decided on the theme because of the growing profile of Nigerian operating companies through their recent acquisitions or planned acquisitions of key assets divested by some international oil companies.
He said currently, two major divestments are on the cards, which would change Seplat Plc and Oando Plc from midsized players into big-time operating companies.
Wabote, noted that Seplat Plc, is hoping to conclude the acquisition of the entire share capital of Mobil Producing Unlimited (MPNU) from ExxonMobil Corporation, a deal that would triple Seplat’s production and add 95,000 barrels of oil equivalent per day.
Similarly, he said that Eni has signed an agreement last month to sell Nigerian Agip Oil Company Ltd to Oando Plc, a deal that will include NAOC’s 4 onshore blocks, the Okpai 1 and 2 power plants, and two onshore exploration leases.
The transaction he said will double Oando’s reserves to 996 million barrels of oil equivalent.
“What is playing out is the implementation of the oil majors’ strategic move to sell down their onshore assets in Nigeria and concentrate on their offshore operations, where they retain a competitive advantage and contend with minimal human interferences.
“The implication is that we should expect other majors to soon offer their onshore assets for sale, while many other Nigerian independents will have a shoe-in.
“The ongoing and planned divestments are big accomplishments for Nigerian Content development. They are bold statements that Nigerian indigenous operating companies have come of age and have acquired the technical, managerial, and financial capabilities to play in the big league.” excited Wabote noted.
He added, “We are proud that we have moved from near zero participation in the oil and gas sector to the point that our indigenous operators such as SEPLAT, AITEO, EROTON, and others are now responsible for 15 per cent of our oil production and 60 per cent of our domestic gas supply.
“With this planned acquisition, the share of local firms in crude oil production could reach 30 percent or more in a short while.”
Excitedly, the ES, noted, “It is heart-warming to see our local operating companies deploy ingenious techniques to double and sometimes triple production volumes from their acquired assets and apply homegrown solutions in addressing host community concerns.”