The current divestments by International Oil Companies (IOCs) from Nigeria’s upstream petroleum sector is a blessing in disguise for the country, the Chief Operating Officer, Seplat Energy Plc, Samson Ezugworie, has said.
Ezugworie spoke during a panel discussion at the 12th Practical Nigerian Content Forum at Nigerian Content Development and Monitoring Board (NCDMB) Headquarters in Yenagoa, Bayelsa State.
He described the spate of divestments by the IOCs as a success story, particularly in terms of value creation, realisation and retention for the country’s economy.
While the IOCs now focus their attention on deep offshore water operations, the Seplat Energy top official said their divestment programmes have created opportunities for the Indigenous operators to grow their capacities with the development of the country’s onshore shallow water assets.
The discussion, which focused on the topic ‘Upstream Divestments: Outlining the Pathway to Success’, had as its theme: ‘Deepening Nigerian Content Amidst Divestments, Domestication & Decarbonisation’.
“So, we need to enable the divestment opportunities that abound in the country today, because that is the catalyst that will propel Nigeria to grow as have been set out by the current government,” he said.
As a major player among the Indigenous companies in the sector, Ezugworie said Seplat Energy, which has been part of the divestment journey in the Nigerian petroleum upstream sector, remained committed to driving excellence and advancing the fortunes of the Nigerian entity, whilst impacting more lives and promoting national prosperity.
Seplat Energy, he said, started the drive in 2009, leading to the acquisition of the Western Asset blocks in 2010, adding that today the company’s operations cover seven onshore blocks.
Ezugworie attributed the successes recorded by Seplat Energy and other indigenous players to the potency of the local content advocacy, and urged Nigerians to be proud of the advancements and achievements thus far.
Divestment activities, he pointed out, do not only grow local potentials in the Nigerian energy landscape, but also tremendously boost capital development in-country, expand governments’ revenue base in the area of taxes and create jobs for Nigerian businesses and Nigerians.
“Divestments in Nigeria have been of great success. What we need to do today is to make the sky wide enough for all the birds to fly” he said, noting that funding remains very strategic, as the right balance must be struck between sourcing for funding locally and attracting foreign direct investments.
The Seplat Energy COO emphasized the need for a clear and transparent commitment to ESG (Environment, Social and Governance), by ensuring that governance and ethics were critical considerations for getting the right funding.
“There should be a clear and transparent commitment to ESG, while shareholders in the business should get the right dividend which retains existing investors and attracts new ones.
“The future looks bright for Nigeria as we have quite a number of divestment opportunities in-country. Let’s enable those and allow the country to achieve organic growth,” he said.
