Chevron to Sell off Two Nigerian Offshore Blocks
Chevron Nigeria Limited has revealed that it will sell off its stakes in two Nigerian offshore oil and gas blocks, a sale document seen by Reuters shows, as the company seeks to dispose of aging assets to focus on its fast-growing US production.
The sale process was confirmed by a Chevron spokesman.
According to the document, the US energy giant is offering its 40 per cent stake in the shallow-water Oil Mining Lease (OML) 86 and OML 88, which produce around 6,200 barrels of oil equivalent per day. The sale is also part of a broader retreat by international oil companies from Nigerian oil and gas fields that have been plagued by pipeline vandalism as well as uncertainty over the country’s tax regime.
Reuters reported that the San Ramon, California-based Chevron has hired Scotiabank to run the sale process. “Chevron Nigeria Limited, operator of the joint venture between the Nigerian National Petroleum Corporation, confirms that it is offering interested parties the opportunity to acquire its 40% interest in Oil Mining Lease 86 and Oil Mining Lease 88 in Nigeria,” spokesman Ray Fohr said in a statement.
“We continuously evaluate our portfolio of assets in the country,” he added.
Scotiabank however declined to comment.