Almost 66 years after commercial oil discovery in Oloibiri Oilfield, the current wave of divestment hitting the nation’s oil and gas industry has been deemed necessary to allow smaller entities contribute to economic activities in areas that have become less attractive to international oil companies (IOCs).
To achieve this, the government had, at several times, leveraged marginal bid rounds and production licences to ensure that indigenous firms are given the opportunity to develop their capacity in the upstream sector.
Currently, five IOCs operate in Nigeria and they include SPDC and TotalEnergies, Chevron and ExxonMobil as well as Eni. These five IOCs are also responsible for 45 per cent of Nigeria’s oil production and 40 per cent of gas.
With the heightened pressure on international oil companies (IOCs) to cease exploration and production (E&P) activities in Africa,