The Executive Chairman of AA Holdings, Austin Avuru, from the regulatory point of view, has emphasised the need for proper management in the transition from International Oil Companies (IOCs) to independent operators in Nigeria’s oil and gas sector.
Speaking at the Harvard Business School Association of Nigeria event in Lagos, Avuru highlighted the challenges and opportunities presented by this significant shift in the industry landscape.
Avuru noted that the ongoing divestment by IOCs from onshore and shallow water assets is reshaping the sector, presenting a unique opportunity for indigenous companies to step up and play a more prominent role. However, he stressed that this transition must be managed effectively to ensure sustainable growth and stability.
He stressed that he believes the exit of IOCs and the entry of independents, whether they are Nigerians or independents from around the world, is a process, noting that it is a transition that ought to have been managed properly from a policy and regulatory point of view.
He mentioned that the difference between Nigeria and most parts of Africa is that IOCs are leaving, and Nigerian independents are pulling their chest out and saying that they can do it.
He added that when the sales are over and one goes for approval, those who had the responsibility to manage the process, in the best interest of the Nigerian economy, would not take part in that whole process.
