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

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.