Nigeria’s Minister of State for Petroleum Resources (Oil) stated on Thursday that the country supports Shell’s intention to sell its onshore oil and gas assets and will provide the required regulatory approval.
After deciding to sell the company to a group of five primarily local businesses, Shell, said on Tuesday that it was leaving Nigeria’s onshore and shallow water activities. The company chose to concentrate its future investments in the less problematic deep offshore areas.
In a statement, Lokpobiri played down worries about potential drawbacks from oil companies relinquishing their holdings in Nigeria.
“On the part of the government, once we get the necessary documents, we will not waste time to give the necessary considerations and consent,” he stated.
Nigeria, the largest oil producer in Africa, has seen a decline in production in recent years as a result of insufficient investment in the industry and theft and sabotage, which primarily occur at onshore sites.
The departure of oil majors opens the door for new companies to take over the fields, according to NNPC Ltd, the state oil company, which stated as much on Wednesday.
Rather than placing timelines on Nigeria’s energy transition, Lokpobiri emphasized Africa’s methodical approach to the global shift away from fossil fuels and toward renewable energy sources.
Speaking at the World Economic Forum in Davos, the minister stated that the government will not obstruct legal commercial dealings and reiterated its dedication to “fostering a business-friendly environment” in the industry.