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The Executive Secretary of the Nigerian Content Development and Monitoring Board (NCDMB), Engr. Simbi Kesiye Wabote, has expressed concerns regarding the ongoing and anticipated divestments of onshore assets by international operating oil and gas companies (IOCs) and their subsequent acquisition by Nigerian operating companies…CONTINUE READING
Wabote cautioned that this process should not adversely affect compliance with the Nigerian Oil and Gas Industry Content Development (NOGICD) Act or the remittance of tax revenues to the federal government.
During a breakfast meeting with members of the Guild of Corporate Online Publishers (GOCOP), newspaper editors, and broadcast station directors in Abuja, he highlighted the significance of Nigerian Agip Oil Company Ltd’s planned asset sale to Oando Plc and Seplat Plc’s intended acquisition of Mobil Producing Unlimited (MPNU) assets.
These transactions, he noted, would elevate Oando and Seplat from mid-sized players to major players in the oil and gas industry.
Wabote clarified that international oil companies were not exiting the country due to unfavorable conditions; instead, they were rationalizing their assets.
They were shifting their focus from onshore and shallow waters to deep offshore operations, where they maintained a competitive advantage with minimal human interference.
He described these ongoing and planned divestments as significant milestones for Nigerian Content development, highlighting that they showcased the technical, managerial, and financial capabilities of Nigerian indigenous operating companies to compete on a larger scale.
Wabote stated, “We are proud that we have transitioned from almost zero participation in the oil and gas sector to the point where our indigenous operators such as SEPLAT, AITEO, and others are now responsible for 15 percent of our oil production and 60 percent of our domestic gas supply.” With these planned acquisitions, the share of local firms in crude oil production could soon reach 30 percent or more.
