The Federal Government has said that more International Oil Companies (IOCs) operating in Nigeria are going to divest from onshore oil and gas assets due to poor earnings caused by the massive crude oil theft across the country.
The Chief Executive, Nigeria Upstream Petroleum Regulatory Commission (NUPRC), Gbenga Komolafe, disclosed this on Tuesday, at the Energy and Labour Summit of the Petroleum and Natural Gas Senior Staff Association of Nigeria, (PENGASSAN), in Abuja.
Komolafe also pointed out that the development would lead to job losses in the oil sector, but called on indigenous oil companies to take advantage of this to recruit professionals and grow in-country capacity.
Komolafe, who delivered the keynote address, titled: “Energy Transition and its Effects on the Nigerian Workforce,” told the audience that energy transition was valid, but noted that the timing was uncertain.
“Fundamentally, it is important to note that within the next few years, most IOCs shall divest from on-shore oil and gas assets due to poor return on investment as a result of crude oil theft, and this may pose threat to job security”, he stated. The Chief Executive noted that the Government must utilise its hydrocarbon resource for industrialisation and economic growth.
Earlier at the summit, the Nigerian National Petroleum Company Limited (NNPC) had observed that there was currently a high level of discrimination against investments in fossil fuels, including oil and gas, due to the global push for energy transition.
The Group General Manager, National Petroleum Investment Management Services, a subsidiary of NNPC, Bala Wunti, said, “The consequence of that is that we are only producing from investments that we had made in the past. And that decision is going to lead to a very short supply of fossil fuel for tomorrow.
“That will lead to significant disruption, but that disruption presents an opportunity for industries such as ours.”
In his address at the summit, the President, PENGASSAN, Festus Osifo, said since the workforce in the oil and gas sector would be affected by energy transition, it was important to discuss this.
