An Oil Block Platform off the Niger Delta

The Nigerian National Petroleum Corporation NNPC has lamented the negative impact of selling off Niger Delta joint venture oil blocks to incompetent local investors insisting that it has stagnated the oil and gas industry.

The NNPC further revealed that buyers of divested assets of its joint Venture JV partners have all failed to make meaningful impacts and contributions to the development of the assets almost twenty years after the sale.

For this reason, therefore, the NNPC through its Group Managing Director Mele Kyari said going forward future divestments would pass through very stringent conditions to ensure that only competent local firms with capacity acquire Blocks.

Kyari also revealed that the NNPC has commenced engagements with investors across the sub-West African sub-region to serve as off-takers for the country’s gas ahead of the completion of the Ajaokuta-Kaduna-Kano, AKK, gas pipeline.

Kyari was speaking at the 25th Nigerian Economic Summit NES held in Abuja, Nigeria’s capital city. He said had the NNPC knowledge of the incompetent of the buyers it would not have consented to the sale of the assets.

To correct this anomaly, kyari revealed that going forward the NNPC has placed stringent conditions for divestment of assets by its joint venture partners. Joint partners with NNPC have also been strongly advised to desist from proposing the divestment of their stakes to firms who are not capable of improving the fortunes of their assets.

It would be recalled that since 2010, a number of multinational oil companies have divested and sold off their stakes in about 20 oil bocks in Nigeria to a number of indigenous and foreign oil firms. Most of these new partners have performed poorly in terms of impacting the industry with added assets and value but rather they are found to be devaluing the already existing assets.