The Nigerian Upstream Petroleum Regulatory Commission has said that no international oil company is leaving Nigeria despite their divestments.

NUPRC’s Chief Executive Officer, Gbenga Komolafe, described the recent divestments by IOCs in the oil sector as  “portfolio rationalisation”.

Komolafe said at the just-concluded NAPE Conference in Lagos that portfolio rationalisation was not uncommon in other jurisdictions, saying divestments give opportunities for more investments and increase local participation in the upstream sector.

“It is also important to point out that no international oil company has left Nigeria, as we even see erroneously in the media. It is good for us to note that what the industry has experienced is portfolio rationalisation, which is not uncommon in other jurisdictions. Divestment gives an opportunity for more investment and increases local participation in the upstream,” he explained.

Komolafe emphasised that some of the testaments to the commission’s regulatory transparency and credibility drive are the insurance of the upstream asset divestment in the second quarter of 2024 to guide the recent portfolio rationalisation process.

He said four divestments and six transactions received ministerial approvals within the period.

“We are glad to report that, based on the clearly articulated framework, four divestments and six transactions have received ministerial consent and approval within this period,” he stressed.

The NUPRC boss expressed confidence that “new asset holders will conduct operations in a vigorous and business-like manner for optimal value creation for enhanced energy security and sustainability.”

Speaking on domestic crude supply to local refineries, he said the commission is keenly aware of its responsibility to ensure optimal crude supplies to domestic refineries under fair and just commercial terms and in line with the provisions of the Petroleum Industry Act.

“Accordingly, the NUPRC has facilitated the insurance of guidance, templates and guidelines that provide clarity and entrench administration. We will continue to implement the acts and foster collaboration among industry actors to deepen domestic energy security, availability of products and affordability of energy commodities consistent with our market as enshrined in the PIA,” he stressed.

The CCE said the NUPRC has also prioritised decarbonisation efforts through the Nigerian Gas Flare Commercialisation Programme, aiming to capture 250 million cubic feet per day of gas flares and significantly reduce emissions.

He also noted that NUPRC’s focus extends to social responsibility, highlighting the successful incorporation of 137 Host Community Development Trusts, fostering better industry relations and encouraging peaceful coexistence between oil companies and local communities.

With this approach, Komolafe expressed confidence in Nigeria’s potential to achieve its energy goals and urged industry professionals to support NUPRC’s initiatives for a sustainable energy future.

In alignment with Nigeria’s new Petroleum Industry Act, Komolafe detailed several regulatory frameworks implemented by NUPRC to boost transparency and encourage investment including the issuance of 25 priority regulations, the Upstream Asset Divestment and Exit Framework to manage asset transfers, and a licensing round for 31 oil and gas blocks intended to expand reserves and stimulate economic growth.