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Divestment Dynamics in Nigeria's Oil and Gas Sector: Empowering Indigenous Operators in the Oil and Gas Market

Damilola Aishat Alada

Abstract

The Nigerian oil and gas sector is experiencing unprecedented transformation as international oil companies (IOCs) increasingly divest from onshore and shallow water assets, creating substantial opportunities for indigenous operators. This study examines the complex dynamics driving this divestment trend and analyzes how domestic oil companies (DOCs) are positioning themselves to capitalize on these opportunities. Through comprehensive analysis of policy frameworks, particularly the Petroleum Industry Act of 2021, local content development initiatives, and emerging market structures, this research demonstrates how divestment is reshaping Nigeria's energy landscape. The findings reveal that while divestment presents significant challenges related to technical capacity, financing, and environmental stewardship, it also offers unprecedented opportunities for indigenous participation, local value creation, and sustainable energy sector development. The research contributes to understanding how developing nations can leverage global energy transitions to strengthen domestic capabilities and achieve greater energy sovereignty.

Keywords

divestmentindigenous operatorsNigeria oil and gaslocal contentdomestic oil

References

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