Nigeria's state oil firm NNPC sees an opportunity for new players to enter the country's onshore and shallow water oil fields after the exit of Shell and others, CEO Mele Kyari said on Wednesday.
NNPC has joint ventures with oil majors such as Chevron Corp., Shell, TotalEnergies SE, Exxon Mobil Corp. and Eni SpA that pump most of Nigeria's oil.
Shell announced the sale of its Nigeria onshore oil and gas assets to a consortium of five mostly local companies on Tuesday for up to $2.4 billion. Exxon Mobil, TotalEnergies and Eni have also announced divestment plans, or already sold assets in Africa's largest energy industry, subject to regulatory approvals.
"It is going to provide an opportunity for mid-scale companies to fill the gaps, whether they are local or international, and it is already happening," Kyari said in a speech.
Declining output
Nigeria has suffered declining output due to oil theft and sabotage, mostly at onshore fields, while costs are high and there have been community protests over environmental degradation.
But smaller, more nimble companies may be better equipped to navigate Nigeria's challenging operating environment than the majors who are under pressure from shareholders, governments and rights groups to cut their carbon footprint.
Kyari said decisions to divest land and swamp oil field assets were driven by complications created due to the energy transition that is now compelling oil producers to retreat from troubled regions.
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