IOCs Cannot Take Nigeria for Granted – Okunbor
Amid speculations that International Oil Companies (IOCs) are exiting Nigeria due to ongoing divestments and asset sales, the Country Chair and Managing Director of Shell Petroleum Development Company of Nigeria (SPDC), Osagie Okunbor, has reaffirmed that Nigeria remains a critical player in the global energy sector.
Speaking at the Nigerian International Energy Summit (NIES), Okunbor dismissed claims of IOCs abandoning Nigeria, stating that the multinationals are simply shifting their investment focus to deepwater operations.
“The country has a set of capable hands in the private sector that have taken over assets. IOCs are investing more in the country but in a different terrain which is the deepwater. The whole divestment essentially provides opportunity for focus analysis to offshore deepwater,” Okunbor said.
He highlighted that the divestment trend has fostered a more dynamic and competitive oil and gas industry, with indigenous independent operators stepping in to take over onshore and shallow water assets. According to him, this shift has created a healthier industry landscape where both IOCs and indigenous companies can collaborate effectively.
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“Both parties involving indigenous independent operators and IOCs have shaped the industry in Nigeria, which has also led to healthy competition. The industry is more modified, and we can work together,” he added.
Okunbor emphasized the critical role of Nigeria’s regulatory framework in creating a conducive environment for industry growth. He stressed the need for increased oil production, stating that the country’s energy future depends on its ability to scale up output to meet global demand.
