IPPG Strives to Transform Nigeria into a Pivotal Value Addition Center for the Oil and Gas Sector Through Strategic Acquisition of Divested Assets
The Independent Petroleum Producers Group (IPPG) has unveiled its ambitious plans to position Nigeria as a critical hub for value addition in the oil and gas industry by acquiring onshore and shallow water assets divested by International Oil Companies (IOCs).
Mr. Abdulrazaq Isa, Chairman of IPPG, shared these insights during the 12th Practical Nigerian Content (PNC) conference in Yenagoa, Bayelsa State.
The “Deepening Nigerian Content amidst Divestments, Domestication & Decarbonisation” event highlighted IPPG’s commitment to catalyzing Nigeria’s potential as a significant player in value-added hydrocarbon production.
Noting the trend of significant IOCs divesting their onshore and shallow water assets to focus on offshore exploration, Isa explained that this transition aligns with global discussions on energy transformation. With companies like Agip, TotalEnergies, ExxonMobil, and Shell divesting, Nigerian entities, including IPPG members, are acquiring these assets.
Isa emphasized that the goal goes beyond maintaining the status quo. IPPG envisions transforming Nigeria into a pivotal value-added hub, shifting from merely exporting crude oil to refining resources locally. The acquired assets will be utilized for the production of fertilizers, the establishment of methanol and petrochemical plants, and, crucially, power generation using gas to generate electricity for both grid and cluster supply.
In addition, Isa highlighted the ongoing construction of industrial parks by IPPG members, emphasizing their role in driving industrialization and economic empowerment within the country. He stressed the need for continuous government support to realize these strategies.
“It’s crucial that we crystallize all these strategies and that the government continues to support us,” Isa remarked. This collaboration aims to generate economic activity, create employment opportunities, and yield positive ripple effects across various sectors.
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IPPG, comprising 29 indigenous Exploration and Production (E&P) companies, collectively boasts a production capacity of approximately 250,000 barrels per day (bpd) of oil and a significant volume of gas. Isa credited this achievement to the local content policy, emphasizing that members are not only involved in oil and gas production but are also venturing into refining, with plans to diversify into petrochemicals and fertilizers.
Isa concluded by asserting that Nigeria’s future lies in value addition rather than a sole focus on the production and export of oil. IPPG, he stated, plays a critical role in steering the nation toward this transformative journey.
