NEITI plans review of $6.03bn divestments by IOCs, amid environmental issues, other concerns

The Nigeria Extractive Industries Transparency Initiative, has announced a review of divestments involving 26 oil blocks worth $6.03 billion by five International Oil Companies, amid lingering environmental concerns raised by host communities and other unresolved issues.

Executive Director of the agency, Ogbonnaya Orji, said this during the agency’s first quarter media briefing in Abuja, expressing concern that some of the divestments might not have properly addressed environmental issues raised by oil producing communities.

Orji, while briefing journalists, said the oil and gas divestments are reshaping Nigeria’s industry, hence, the need to ensure that the divestments adhered to due process.

He assured that the agency will strengthen collaborations with the Nigerian Upstream Petroleum Regulatory Commission, NUPRC and the Nigerian National Petroleum Company Limited, NNPCL to ensure full disclosure of financial, social, and environmental aspects of divestments.

To this end, Orji the agency will promote greater public awareness and engagement in asset transfers and ensure transparency in forward sales to impact government revenues and fiscal stability.

He called for collaboration with regulatory bodies such as NUPRC and the Ministry of Environment to ensure transparency and enforce accountability for clean-up costs and remediation efforts.