NEITI pledges to review $6bn divestments by IOCs

The Nigeria Extractive Industries Transparency Initiative has pledged to strengthen transparency in the oil and gas sector and review the recent divestments by international oil companies.

The agency said the comprehensive examination will look at every step of the divestments involving 26 oil blocks worth $6.03bn by five IOCs.

The NEITI Executive Secretary, Ogbonnaya Orji, revealed this at a briefing to update the public on the implementation of the Extractive Industries Transparency Initiative in Nigeria.

The transactions include notable sales such as Shell to Renaissance ($2.4bn), ExxonMobil to Seplat ($1.28bn), and TotalEnergies to Chappal ($860m).

In 2024, the Nigerian Upstream Petroleum Regulatory Commission gave regulatory approval to IOCs that sought requests to hand over its assets to local investors.

Orji, while briefing the newsmen, said the oil and gas divestments were reshaping Nigeria’s industry, hence the need to ensure that the divestments adhered to due process.

He said NEITI would strengthen collaborations with the Nigerian Upstream Petroleum Regulatory Commission and the Nigerian National Petroleum Company Limited to ensure full disclosure of the financial, social, and environmental aspects of divestments.

He added, “Oil and gas divestments are reshaping Nigeria’s industry. NEITI recognizes the urgent need for transparency in these transactions to protect national interests, host communities, and revenue flows. To achieve this, NEITI will expand industry reports to include dedicated sections on divestments.

“Strengthen collaboration with NUPRC and NNPC Ltd. to ensure full disclosure of financial, social, and environmental aspects of divestments. Also, NEITI will intensify collaboration with NNPC Ltd. and other government agencies to disclose forward sales data (pre-sales of crude oil and gas) which impact government revenues and fiscal stability.”

Orji also stated that the agency would expand its scope to ensure transparency in the forward sales of oil and gas.

Orji, while emphasising ensuring due process and proper environmental remediation in these deals, expressed concerns over unresolved environmental issues in oil-producing communities.

He called for collaboration with regulatory bodies such as NUPRC and the Ministry of Environment to ensure transparency and enforce accountability for clean-up costs and remediation efforts.

Orji expressed concern that some of the divestments might not have properly addressed environmental issues raised by oil-producing communities.