Niger Delta stakeholders kick over Eni’s move to sell 5% JV stake
Tension is rising in the Niger Delta, following plans by the company, Eni, to divest its five per cent stake in the Renaissance Joint Venture (JV), with youths and key
Tension is rising in the Niger Delta, following plans by the company, Eni, to divest its five per cent stake in the Renaissance Joint Venture (JV), with youths and key stakeholders warning of resistance over the proposed sale.
The stake, estimated at between $400 million and $500 million, has attracted interest from several local and international investors. However, indications that the deal may favour the Sandesara brothers, owners of Sterling Oil Exploration and Energy Production Company (SEEPCO), have sparked outrage among host communities.
The divestment process, managed by Lazard, is said to be highly stringent, requiring bidders to provide 100 per cent of the bid value upfront—effectively tilting the process in favour of cash-rich investors.
The Niger Delta Transparency Forum alleged that Eni was attempting to transfer a national asset to the company.
In a statement by its Secretary-General, Ebikade Moses, the group alleged that SEEPCO had faced repeated complaints from indigenous contractors for some reasons
“We are calling on the Federal Government to look into this matter of urgent national importance. The entire Niger Delta youths are unhappy and will resist this move. Stakeholders are not comfortable with handing over such assets to companies. There should be regard for local content and community engagement,” the statement said.
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The group said the operations of First Hydrocarbon Nigeria (FHN), a subsidiary linked to SEEPCO, should be monitored to ensure royalty obligations and regulatory compliance requirements with the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).
According to the group, there should be no reduction in local workforce participation and replacement of Nigerian employees with expatriates to avoid the violation of the Federal Government’s local content policy.
It warned against backlash in a region where communities have long complained of marginalisation despite decades of oil production.
The group said the ongoing divestment by international oil companies has heightened fears that asset transfers may not necessarily translate into improved accountability or community benefits.
The Renaissance JV was previously held by the Nigerian National Petroleum Company, Shell, TotalEnergies and Eni, with Shell and TotalEnergies already exiting their stakes in recent years.
Analysts warn that failure to address community concerns could trigger unrest and disrupt oil operations in the region, underscoring the fragile relationship between oil companies and host communities in the Niger Delta.
