Nigeria’s Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, has reiterated the importance of strategic divestment in the oil and gas industry, describing it as a critical pathway for value retention and increased local capacity.
Speaking in Abuja while receiving a delegation from the Independent Petroleum Producers Group (IPPG), the Minister said the Renewed Hope administration, under President Bola Ahmed Tinubu, has successfully concluded several long-standing divestment deals that had previously stalled, resulting in a measurable boost in crude oil production and broader indigenous participation in the sector.
The delegation, led by IPPG Chairman Abdulrazaq Isa, visited the Minister to express appreciation for the administration’s support for indigenous companies involved in recent landmark transactions. These include Oando’s acquisition of NAOC from Eni, Chappal Energies’ takeover of Equinor Nigeria’s assets, Seplat Energy’s acquisition of Mobil Producing Nigeria Unlimited (MPNU), and Renaissance Africa Energy’s purchase of Shell’s onshore assets.
“These divestments, once stalled, are now completed and have led to a measurable increase in our production levels,” said Lokpobiri in a statement signed by his Special Adviser on Media and Communications, Nneamaka Okafor. “They validate our position that divestment is in our national interest — especially for in-country value retention and long-term sector sustainability.”
He further highlighted that with international oil companies (IOCs) shifting focus to deep offshore exploration, the successful handover of onshore and shallow water assets to capable Nigerian operators ensures continuity in production and enhances domestic investment in the sector.
The IPPG leadership praised President Tinubu for prioritising indigenous capacity and for appointing local operators to key positions across the energy landscape. According to Isa, the President’s inclusive reforms have strengthened the position of Nigerian companies and introduced fresh dynamism into the oil and gas ecosystem.
“We deeply appreciate President Tinubu’s recognition of local capacity,” Isa said. “His support has not only deepened indigenous participation but has also infused fresh momentum into the sector.”
In his closing remarks, Senator Lokpobiri reiterated the Federal Government’s unwavering support for indigenous players in future divestment processes. He emphasised that increasing Nigeria’s oil production remains a top priority and that new asset owners must demonstrate readiness to reactivate dormant wells.
“There is no alternative to increasing production. Those who have acquired these assets must be ready to re-enter inactive wells. That’s the way forward, and I am happy to note that some of them have already begun that process,” the Minister said.
Lokpobiri reaffirmed the government’s belief that the success of the IPPG directly aligns with Nigeria’s national objective to ramp up output and restore investor confidence in the oil and gas sector.
