Engr. Simbi Wabote, the Executive Secretary of the Nigerian Content Development and Monitoring Board, disclosed at the 2023 Petroleum and Natural Gas Senior Staff Association Energy and Labour Summit in Abuja that Nigerian oil companies have acquired approximately 26 oil mining licenses in the Niger Delta basin over the past decade.
This wave of acquisitions has been spurred by divestments from industry giants, including Shell and ExxonMobil, as they plan to sell oil and gas assets worth billions of dollars.
Wabote explained that these divestments are not detrimental but rather, they present an opportunity to leverage local expertise and capabilities in the upstream sector.
The acquisition of these assets offers multiple advantages, such as injecting new capital, revitalizing divested assets, and increasing crude oil production through technological investments by local firms.
Moreover, it leads to the creation of both direct and indirect employment opportunities for Nigerians and their service providers.
These developments signify the maturation of Nigerian indigenous companies, showcasing their technical, managerial, and financial capabilities, enabling them to compete effectively in the global oil and gas arena.
However, the divestment process is not without challenges. Delays in obtaining regulatory approvals, concerns from various interest groups, potential disruptions in production, job losses, and issues related to environmental and social responsibilities are among the hurdles faced.
Also, ensuring access to the latest technology and managing legacy issues remain vital concerns for new investors.
The Nigerian Content Development and Monitoring Board is committed to working with industry stakeholders to implement regulations that safeguard Nigerian content compliance while allowing indigenous companies to expand their footprint in the oil and gas sector.
