The Special Adviser to President Bola Ahmed Tinubu on Energy, Olu Verheijen, has expressed optimism in the Nigerian Upstream Petroleum Regulatory Commission’s (NUPRC) capacity to resolve the outstanding issues surrounding Shell’s proposed sale of its onshore assets to the Renaissance consortium.
“Many divestment deals have been closed. There has been an accelerated rate of approvals for some of these deals. There is an improvement from what it used to be in the past,” Verheijen stated during a virtual interview with journalists and analysts from 54 African nations.
Verheijen emphasized the administration’s commitment to accelerating international oil companies’ strategic shift from onshore operations to deep offshore and gas businesses. “We remain confident in NUPRC’s regulatory process… We have an objective to accelerate exits for international oil companies, IOCs, who do not want to leave Nigeria but instead focus on other areas, especially the deep offshore and the gas businesses.”
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The IOCs, according to Verheijen, possess the necessary capital and technical expertise to unlock value in Nigeria’s complex deep offshore and gas sectors. However, she stressed that onshore players must demonstrate technical and financial capacity to align with the government’s objective of rapidly growing production.
President Tinubu’s administration has implemented policies and incentives to attract and retain energy sector investors. Verheijen noted that upon taking office, they addressed the decline in investment caused by insecurity challenges and fiscal incentives. “We needed to rebalance and become more competitive compared to other investment destinations,” she explained.
The administration has also introduced five presidential directives to enhance the sector’s attractiveness. “We are also focusing on the midstream and downstream sectors to make them more attractive to investors,” Verheijen added.
Nigeria’s Energy Transition Plan aims to achieve net-zero emissions by 2060. The plan, launched in August 2022, seeks to tackle energy poverty and climate change simultaneously. As the country navigates its energy transition, the resolution of Shell’s onshore asset sale will be a significant step towards accelerating investment in the sector.