Divestment of assets by IOC’s no threat to oil sector – SPE

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080512F1,Oil--drilling-operThe Society of Petroleum Engineers (SPE) has allayed fears that the continuous divestment of assets by International Oil Companies (IOCs) portends grave danger to the sector.

Rather, the body said divestment of stakes in oil blocs by IOCs remained a global trend and in line with sound business decisions not capable of threatening the sector in anyway.

The disclosure was made by SPE Nigeria Council Chairman, Mr. Osayande Igiehon,at the pre Nigeria Annual International Conference and Exhibition (NAICE) press conference.

“Divestment of stake is a normal cause of business. It just happens that in our own part of the world, we have not been seeing those kinds of trend. And that those not make it inappropriate,” he said.

Osayande explained that acquisition and divestment in other parts of the world involves companies taking over businesses that are being divested by the old owners, thus proving a vista of fresh opportunities for the new owners to explore.

The SPE boss argued that both divestment and acquisition is still a part of business that remains in the country because nothing is taken out and in the process new jobs are created, hence, there is no cause for panic.

On the conference theme “To Grow Africa’s Oil & Gas Production: Required Policy, Funding, Technology, Techniques and Capabilities” remained very relevant to the aspirations of the established, emerging and prospective African oil and gas producing countries.

He stressed that, the 2013 conference aims to provide a robust platform to help governments, industry and those in academia position for the aspired production growth, which will be crucial to achieving the needed economic growth in Africa and meeting the world’s growing energy needs.

Also, he said the conference will see the introduction of two novel programs; conference workshop, which will focus on Marginal Field Development Best Practices. And a Women Development Network to be launched this year.

 

Information from The Sun was used in this report.