The Nigeria Extractive Industries Transparency Initiative (NEITI) has announced plans to review recent divestments involving 26 oil blocks valued at $6.03 billion by five International Oil Companies (IOCs). These transactions include significant sales such as Shell's $2.4 billion transfer to Renaissance, ExxonMobil's $1.28 billion sale to Seplat, and TotalEnergies' $860 million deal with Chappal.
NEITI's Executive Director, Ogbonnaya Orji, emphasized the need for transparency in these transactions to protect national interests, host communities, and revenue flows. The agency intends to collaborate with the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and the Nigerian National Petroleum Company Limited (NNPC Ltd.) to ensure full disclosure of the financial, social, and environmental aspects of these divestments.
Concerns have been raised regarding unresolved environmental issues in oil-producing communities affected by these divestments. NEITI aims to ensure that due process is followed and proper environmental remediation is conducted in these deals. The agency plans to expand its industry reports to include dedicated sections on divestments and promote greater public awareness and engagement in asset transfers.
This initiative underscores NEITI's commitment to fostering accountability and transparency in Nigeria's oil and gas sector, particularly as the industry undergoes significant transformations due to these substantial divestments.