The Independent Petroleum Group (IPPG) has commended the Federal Government for the successful completion of divestment deals by International Oil Companies (IOCs) in Nigeria, noting that it has significantly boosted the activities of indigenous companies, which now contribute around 50 percent of the country’s total oil production.
The Chairman of IPPG, Abdulrazaq Isa, made the statement in Abuja on Tuesday at the 8th edition of the Nigeria International Energy Summit.
According to Isa, the wave of IOC divestments highlights the capacity of indigenous players to operate at the highest level, adding that the assets transferred are now in safe hands.
He stated, “With the conclusion of the IOC divestments, IPPG members now have a national responsibility and will be at the forefront of the nation’s industrialisation agenda by investing significantly across the entire industry value chain. This will stimulate strategic sectors, from petrochemicals to agriculture, power to manufacturing, construction to transportation, and many more.”
“The divestment also means indigenous Exploration and Production (E&P) companies now contribute about 50 percent to national oil and gas production, with this share expected to rise over time. This marks a defining moment for our members, and we shall be the catalyst for this economic transformation, a critical pathway to creating a trillion-dollar economy within a decade.”
“For this reason, IPPG applauds and fully supports the domestic crude oil supply obligation this year, being promoted by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), and we are actively engaging with the government on its successful implementation, given its importance in achieving our shared goals of energy security and value creation.”
Isa further emphasised that as the global energy landscape evolves, Africa, led by Nigeria, must seize the opportunity to take control of its energy future on its own terms in order to address the widespread energy challenges faced across the continent.
He noted that the policies introduced by the administration of President Bola Tinubu have brought a steady turnaround in the sector, with tangible outcomes beginning to emerge.
“The diligent implementation of the Decade of Gas Initiative has unlocked critical gas development projects supporting LNG production, gas-to-power initiatives, and more affordable fuel-switching initiatives, notably the Presidential CNG Initiative,” he explained.
Isa pointed to several achievements, including “steady growth in our crude oil production, enabling us to meet our OPEC quota of 1.5 million barrels per day, significant improvements in security within the Niger Delta, and the creation of a conducive operating environment for our operations.”
He also highlighted the announcement of Final Investment Decisions (FIDs) worth $5.5 billion for two major projects, the NNPCL and Total Energy’s Ubeta field development, and Shell’s Bonga North, as a direct result of the Presidential Executive Orders issued in March 2024.
The initiative has also led to the settlement of outstanding legacy gas debts, boosting investor confidence, as well as the announcement of annual bid rounds by NUPRC for the exploitation, appraisal, and development of acreages, indicating a commitment to sustainable production and reserve growth.
In his remarks, Haitham Al-Ghais, the Secretary General of the Organization of the Petroleum Exporting Countries (OPEC), reaffirmed the organisation’s commitment to unlocking Africa’s full oil potential, emphasising that it remains a top priority for OPEC.
Al-Ghais congratulated the organisers for selecting a theme that closely aligns with OPEC’s objectives. “Unlocking the full potential of this great continent is an utmost priority for OPEC, and we will continue to work closely with the Nigerian government and our other African members to achieve this goal,” he said.
He noted the strong and enduring relationship between OPEC and Africa, highlighting that half of OPEC’s member countries are from the continent, including Nigeria, the most populous African nation, and Algeria, the largest in geographical size. Other African OPEC members include Congo, Gabon, Equatorial Guinea, and Libya.
Al-Ghais emphasised the significant oil reserves Africa holds, with proven reserves amounting to approximately 120 billion barrels. He cautioned against disregarding these vast resources in favour of accommodating the energy transition agenda pushed by Western nations.
He also pointed to Africa’s youthful and dynamic population as a strong workforce for the oil sector, saying, “It’s crucial to discuss how we can unlock the potential that this great continent holds, and how to create an investment-enabling environment that attracts the capital necessary to fully realise that potential.”
The Secretary General further stressed the importance of long-term stability in the oil market, a key focus of OPEC’s mission. “The investment needs of the oil industry are substantial, with cumulative requirements amounting to $17.4 trillion by 2050. This is why stability in the oil market is essential for investors to plan effectively,” he added.
