The Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, on Tuesday stated that the recent wave of divestments in Nigeria’s oil and gas sector is already delivering positive results, particularly in boosting crude oil production.
He noted that divestments are a normal aspect of the energy industry and expressed satisfaction that, under President Bola Tinubu’s administration, several long-pending divestment transactions have now been successfully concluded.
Senator Lokpobiri made this disclosure in a post on X while receiving a delegation from the Independent Petroleum Producers Group, who visited to commend President Bola Tinubu for supporting their members in acquiring assets from International Oil Companies.
Lokpobiri noted that the divestments do not signify an exit from Nigeria but rather a strategic shift by IOCs toward deepwater operations, which he described as a “win-win” for all stakeholders involved.
He reaffirmed the federal government’s commitment to supporting indigenous companies in future divestment engagements with IOCs
However, he stressed that boosting production remains the top priority, urging the new asset owners to re-enter inactive wells as a critical step toward achieving that goal.
“The best thing to do was to vigorously ensure that those divestments happened. It’s common sense. If we are going outside the country to canvas for investors, we should also be allowed to divest. That is global best practice.
“My intention is to engage IPPG individually and say what is your plan now that you have acquired these companies. There are so many fields that are (dormant) because of the protracted period of divestments that the IOCs decided not to do anything.
“Our ultimate objective, which is already happening, is to see how we can ramp up production. So, the government will commit to collaborate with IPPG members and all stakeholders in the industry to ensure we work together and justify the decisions to allow these divestments,” he stated.
Meanwhile, the Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, also received a high-powered delegation from the Independent Petroleum Producers Group (IPPG) on Tuesday, led by its Chairman, Abdulrazaq Isa, according to a statement by his spokesman, Louis Ibah.
Ekpo commended the IPPG for their vital role in advancing the gas value chain, highlighting that as indigenous investors, they contribute significantly to job creation and reinvest their profits into the local economy—supporting Nigeria’s broader goal of repositioning the energy sector for sustainable development.
He pledged the federal government’s continued support in addressing the challenges facing IPPG’s operations and called for stronger collaboration between the group, government, and regulatory agencies to drive growth and development in the sector.
In his remarks, IPPG Chairman, Abdulrazaq Isa, expressed gratitude to President Bola Tinubu for appointing members of the group to key positions within the Nigerian National Petroleum Company Limited and the Organisation of Petroleum Exporting Countries.
