The Nigeria Extractive Industries Transparency Initiative (NEITI) has announced plans to review $6.03 billion worth of oil block divestments carried out by five International Oil Companies (IOCs), citing concerns over due process, environmental impact, and regulatory compliance.
NEITI’s move follows the sale of 26 oil blocks, with key transactions including:
Shell’s divestment to Renaissance – $2.4 billion
ExxonMobil’s sale to Seplat Energy – $1.28 billion
TotalEnergies’ asset transfer to Chappal Energy – $860 million
The transparency agency is collaborating with the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and the Nigerian National Petroleum Company Limited (NNPC Ltd.) to scrutinize these transactions and ensure they align with Nigeria’s extractive industry laws.
Why NEITI Is Investigating
NEITI’s Executive Secretary, Ogbonnaya Orji, emphasized that full disclosure is essential to protect Nigeria’s economic interests, host communities, and revenue streams.
“We want to ensure that these asset sales are transparent and compliant with Nigeria’s laws, especially regarding environmental and social impact,” Orji said.
Many oil-producing communities have long suffered from oil spills, gas flaring, and water contamination, raising concerns about how these divestments will address ongoing environmental degradation.
Expanding Oversight in the Oil Sector
NEITI also announced plans to:
Expand industry reports to include a dedicated section on oil asset divestments.
Disclose forward sales data to provide more clarity on financial transactions.
Enhance collaboration with relevant agencies to monitor post-divestment compliance.
With increased global scrutiny on Nigeria’s extractive industry, this review is expected to ensure accountability and mitigate potential economic and environmental risks associated with IOC exits from Nigeria’s oil sector.
