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Breaking: JV oil assets sold to incompetent operators – NNPC

…Sets stringent conditions for divestment

The Nigerian National Petroleum Corporation, NNPC, Tuesday, disclosed that buyers of the divested assets of its Joint Venture, JV, partners have all failed to make meaningful impacts and contributions to the development of the assets, almost gently years after their sale.

Speaking at the ongoing 25th Nigerian Economic Summit, NES, Group Managing Director of the NNPC, Mallam Mele Kyari, also stated that the corporation has commenced engagements with investors across the West African sub-region to serve as off-takers for the country’s gas, ahead of the completion of the Ajaokuta-Kaduna-Kano, AKK, gas pipeline.

Kyari expressed disappointment over the sale of the JV assets to the new partners, noting that if the NNPC had had the knowledge of the incompetent of the buyers; it would not have consented to the sale of the assets.

Going forward, he said the NNPC had rolled out stringent conditions for the divestment of assets by its JV partners, while he cautioned its partners against proposing the divestment of their stake to firms who are not capable of improving the fortunes of the assets.

Since 2010, a number of multinational oil companies have divested and sold off their stakes in about 20 oil blocks in Nigeria to a number of indigenous and foreign oil firms.

SOURCE: Vanguard