Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.

Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire 24.com network.

Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.


NNPC calms fears on divestment by international oil companies

17 October 2013, 06:44

Abuja - Andrew Yakubu, the Group Managing Director of NNPC, has dismissed insinuations that the recent spate of divestments from certain onshore oil blocks by some international oil companies (IOC) could lead to crisis in the nation’s oil and gas industry.

His assurance was contained in a statement by the Group General Manager, Public Affairs of the Corporation, Tumini Green, on Wednesday in Abuja.

The statement quoted the Group Managing Director of the Corporation, Andrew Yakubu, as giving the assurance at the ongoing World Energy Congress in Daegu, South Korea.

According to him, the divestments are not only healthy for the oil and gas industry in Nigeria, but will also go a long way in promoting effective indigenous participation in core upstream activities.

“These are not withdrawals in the real sense of withdrawals.”

“The fact is that a number of these IOCs are moving into more challenging frontiers in the deep offshore and are leaving the onshore blocks which they consider less challenging.”

Yakubu said the major players that were divesting had actually been sitting on each of the affected acreage and had allowed them to go fallow for years without significant development.

“So, it is only fair for them to release these blocks so that others, especially the indigenous operators, can have the blocks and grow in the upstream business.”

“This, indeed, is a good development and I think we are moving in the right direction,” he said.

He said that the divestment offered immense opportunities for the nation’s indigenous flagship upstream operator, the Nigerian Petroleum Development Company (NPDC).

Yakubu said this would enable it to grow to its capacity, especially as it strived to meet the target of daily crude production of 250 000 barrels being projected by 2020.

He also said the advent of the shale gas and oil revolution in America for now would not have serious negative impact on the nation’s crude oil fortunes as earlier projected by some petroleum analysts.

“No doubt, the shale gas phenomenon poses a pushback on our oil and gas but the good news is that as we speak, the impact is going to come a very long time from now.”

“This is because a close examination of the various discoveries of shale gas shows a huge misalignment between what was projected and the actualisation of most of the gas projects that would bring shale gas into full maturity.”

He explained that though the shale gas revolution was real, its availability in the global energy market was being hampered by high cost and other infrastructural challenges.

He added, however, that the NNPC was moving to activate measures to ensure that the country was not caught napping if and when shale gas achieved the projected global penetration.

“Once again, the good news in this regard is that Mr President, through the Honourable Minister of Petroleum Resources, Diezani-Alison-Madueke, has made it clear that the maximisation of our various energy resources is central to the reforms in the oil and gas industry.”

“Back home, we have since channelled our energy to the development of petrochemicals, fertilisers and other gas-based industries that would maximise the utilisation of our gas resources.”

“So far, our interactions and engagements with various global energy leaders in this congress, have reassured us that we are moving in the right direction,” he said

-    NAN


Read News24’s Comments Policy

Comment on this story
Comments have been closed for this article.

Read more from our Users

Nigeria @ 56: Words to my green f...

A leader’s job is not to dictate, but rather to be respected, admired and be a trustee, of the land we love, with so much potential, a land which should be freer than free. Its still a long way to fufilling our destiny! Read more...

Submitted by
Isaac Asabor263
Recession: An opportunity for Nig...

The recession should be seen as an opportunity for the country’s promotion as long as we all collectively conduct ourselves in a patriotic manner, writes Isaac Asabor.  Read more...

Submitted by
Black and White

We want to imitate the whites in everything because we are ignorant of our inherent originality and content. We spend all our Naira to acquire his inventions because we so oblivious of our natural endowments that we allow him have it for free. Read more...

Submitted by
Nate Nat
Adamawa State University Mubi: A ...

ADSU integrity forum has accused the Sunday Joshua Wugira, a lawyer, of adopting unorthodox tactics by abusing his privilege by attacking the integrity of ADSU Vice Chancellor Dr. Moses Zira Zaruwa, writes a News24 reader. Read more...

Submitted by
Abdulsalam Jubril
My Country Nigeria (Part One)

Poetry by Abdulsalam Jubril.

Submitted by
Abdulsalam Jubril
Recession, dearth in leadership a...

Every leader has the opportunity to become great and making himself immortal in the lives and hearts of people for generations to come. Will Mr. President seize this opportunity?, questions Abdulsalam Jubril. Read more...