Chevron Selling 5 Nigerian Blocks In Total

A United States-based Chevron Corp is selling five Nigerian shallow-water oil blocks, the oil firm said yesterday , the latest oil major seeking to dispose of assets in Africa’s biggest producer, the Reuters reports.

Royal Dutch Shell, Italy’s Eni and France’s Total have sold several Nigerian onshore blocks in recent years, while U.S. firm ConocoPhillips is selling its Nigerian businesses to Oando Energy for about $1.79 billion.

Nigeria wants more direct ownership of its oil and gas, either through the state oil company or local firms, raising concerns among foreign oil majors they may lose smaller assets for nothing if they don’t sell now, industry experts say.

Nigeria also suffers from widespread oil theft and an at-times difficult relationships with local communities, driving up the costs of operating there, while a long-delayed energy bill is stuck in parliament, adding to industry uncertainty.

Yet foreign oil majors like Shell, Exxon Mobil and Chevron remain keen on expanding offshore Nigeria and want to keep hold of their biggest producing fields onshore, so any disposals have tended to be of smaller, more marginal onshore assets.

Chevron is selling its 40 percent stake in OML 52, 53 and 55 in the Niger Delta, the company said in a statement on Tuesday, after announcing the sale of the same-sized stake in OML 83 and OML 85 last week.

The sale will be handled by French Bank BNP Paribas, oil and banking sources told Reuters. The bank did not immediately respond to request for comment.

Chevron said it would prefer to sell to local Nigerian companies, in line with government regulations on boosting local ownership of its oil.

– See more at: http://leadership.ng/news/190613/chevron-selling-5-nigerian-blocks-total#sthash.kwuplGKZ.dpuf

About Author: Integrity Org

Integrity Organization is committed is an anti-corruption, research and advocacy organization. Its activities are centered on the aim to reduce the tolerance for corruption in Nigeria.

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