FG Pledges Collaboration With Renaissance Energy To Increase Oil Production
By Sunday Etuka, Abuja
The Federal Government has pledged to work closely with the Renaissance Energy to ramp up crude oil production in Nigeria.
Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, made the pledge on Wednesday in Abuja, while receiving a team from the Renaissance Energy, led by its Managing Director, Mr Tony Attah.
Recall that Renaissance Energy recently acquired Shell Petroleum Development Company (SPDC) of Nigeria.
Shell sold its stake in SPDC to Renaissance at the sum of $2.4 billion to move offshore.
Speaking, the Minister said the administration is willing to work closely with Renaissance to ramp up crude oil production.
He also stated that the administration operates an open door policy, therefore, whatever they need to achieve the target would be provided.
Lokpobiri commended Renaissance for the bold step taken to acquire Shell.
“Your capacity to acquire Shell was something we were all proud of. My convicted is that this industry will grow under renaissance. The Shell assets will have better yield under renaissance,” he said.
He advised more companies to acquire onshore and shallow water assets as the government has provided conducive environment for investment in the oil and gas industry.
On divestment, the Minister said that the exercise was the best thing that has happened to Nigeria as it was preventing the flow of investment into the country.
He stated that decision like the fixing of vandalised pipeline which was hitherto taken abroad would now be taken in Nigeria to get it promptly fixed.
Lokpobiri also mentioned that when dividends are declared, non will go to the Hage, they would be retained here in Nigeria.
Lokpobiri who stated that no country in Africa has the kind of manpower Nigeria has in the oil and gas industry, said Africa is waiting for Renaissance and others to take the lead.
“If you unveil Shell, ExxonMobil, Chevron, if you unveil all the IOCs, beyond the name, may be few of their top management, all those you see, who had created this company over the years were Nigerians. The recorded of Shell in Nigeria were basically created by Nigerians.
“Nigeria will do better with divestments. Decisions will no longer be taken abroad. If anything happens to the pipelines, they don’t need to wait for the Hage to take decision. Right now, if anything happens, the decision will be taken in Lagos, Abuja or in the Niger Delta so we don’t need to wait for anybody to take those decisions. When dividends are declared, non will go to the Hage, they will be retained here.
“This is also an opportunity for Nigeria oil and gas company to take the lead. And truly play that role that we are as leaders of Africa.
“In oil and gas, no country in Africa can be compared with Nigeria in terms of human capacity,” he said.
Speaking further on divestment, the Minister recalled: “Few months ago, people didn’t think that these divestments were going to be possible. But my possible has always been clear, that Divestment is a global best practice. If you go outside to converse for investment , the message is come and invest and divest at will. And Nigeria can’t be an exception. Divestment is a global practice.
“When I became a Minister, we had several divestment issues. Some of them have been there for years. But my position is very clear, that divestment is a global best practice. If you want investment, you must also allow people to divest when they want to.
“I am proud to say that under the leadership of President Bola Tinubu these divestments that were hitherto stalled, which were basically one of the obstacles to the flow of investment were all consented to and Mr President personally signed.
“That is evidence of leadership, leadership is not just by mouth it is by action. The President as Minister directly overseeing the Petroleum sector saw the need to ensure that all those divestments were done.
“And today, when people want to invest, that question is no more there. Whether Nigeria is an investment destination where you can come and invest and divest. But it was a major issue in 2023. When Seplat and ExxonMobil was stalled, the President gave a very clear directive for the matter to be sorted. And it was sorted so, today that question is no more there,” he said.
Earlier, the Managing Director of Renaissance Energy, Mr Tony Attah, said the team was at the Ministry to appreciate the Minister for his contribution towards the successful acquisition of SPDC.
