Global divestment of international oil companies: beyond the Nigerian experience

Abstract

This paper examines the structural forces driving the divestment of International Oil Companies (IOCs) globally. Since the early 2010s, IOCs have progressively withdrawn from mature oil fields, a trend that is clearly evident in Nigeria. This phenomenon is also noted in other African countries, including Ghana, Senegal, and Côte d’Ivoire, albeit to a lesser extent. In the global spotlight, this trend is prevalent in North America, Asia, and Europe, reflecting a transnational shift influenced by economic and geopolitical considerations. Through the analysis of secondary data, it was revealed that the rationale for IOCs’ divestment in Nigeria includes the global transition to renewable energy, increasing regulatory constraints, and heightened demands for environmental stewardship. Situated within the international relations discourse, this paper appraises the diverse forms of divestment and their broader implications. It asserted that this phenomenon transcends localised narratives, such as those related to Nigeria’s Niger Delta thereby reframing divestment as a structural political economy adjustment. By investigating these dynamics, the paper contributes valuable insights to the discourse on energy politics and global governance.