An Examination of the Strategic Options of Nigerian Independent Energy Companies in a Climate of Onshore Divestment

Monarch is happy to announce the recently authorised research proposal by Dual PhD/DBA Research Candidate, Mr. Allison Aliu, addressing the strategic options of Nigerian Independent Energy Companies in a climate of divestment by International Energy Companies of their on-shore and near-shore assets.

The Research

There have been significant shifts in perspectives of the global energy landscape in the last decade and even more within the last 5 years. The quest for cleaner energy sources has rapidly increased with unfavorable climatic changes associated with carbon emissions from traditional fossil fuel consumption (J. Mshelia & J. Anchor, 2021). These shifts have necessitated International Energy Companies (“IEC”) to re-strategize to ensure sustainability (Kirsch, 2014). IECs have begun to review their asset portfolios, energy sources and restructuring to promote clean energy exploration. Host countries with more challenges and existing threats to operations are some of the primary assets considered for divestment (Ulf Bosch & Bosch, 2018). Nigeria is one of those developing mono-economies rich in hydrocarbons impacted by the IEC’s restructuring decision to exit their onshore businesses. In the case of Nigeria, the IEC’s goal and first choice is to sell to local energy companies referred to as Nigerian Independent Energy Companies (“NIEC”). However, obtaining approval from the local regulatory authorities typically takes extensive time.
The focus of the contemplated research is on the challenges faced by the NIECs in the bidding or transfer, purchase, and sale of onshore assets. ExxonMobil, Shell, and Agip have all announced their willingness to sell off their significant interest in producing assets in Nigeria. Highly ranked among the prospective buyers are the NIECs with their desire for growth. The contemplated research endeavors to develop a conceptual framework or model to help guide the NIECs through the complex asset acquisition process. A triangulated research method, using a literature review, content analysis of organisational data and interviews with major stakeholders in the Energy sector in Nigeria will be applied. The contemplated research examines the above by analysing seminal literature from Theories on Governance, Social Justice, and Economic Development. Exit strategies employed by the IEC from Nigeria are discussed and could be an opportunity for future research.

The Researcher

Mr. Allison Aliu is a Dual PhD / DBA Combined program candidate. He holds a B.Sc. in Microbiology from the University of Ilorin, Kwara, Nigeria as well as an MBA from the Lagos Business School. Mr. Aliu is an experienced Oil & Gas Commercial Manager with a track record leading negotiations and executing complex Petroleum Agreements across the Petroleum Industry. At present, he holds the position of Commercial Manager Oil & Gas at Seplat Petroleum Development Company Plc. Previous to that, he held the position of Commercial Adviser / Crude Handling at Shell Petroleum Development Co. of Nigeria Ltd. He has also held positions at Saro Agrosciences Ltd. and C.F Canute Ltd.