Chevron Puts Two Nigerian Offshore Oil Blocks Up For Sale Over Oil Theft

Chevron has launched the sale of its stakes in two Nigerian offshore oil and gas blocks, a sale document seen by Reuters News Agency showed, as the company seeks to dispose of aging assets to focus on its fast-growing production in the United State.

Ray Fohr, spokesman the California-based company has confirmed the sale process.

Chevron Nigeria Limited (CNL) is offering its 40 percent stake in the shallow-water Oil Mining Lease (OML) 86 and OML 88, which produce approximately 6,200 barrels of oil equivalent per day, the document says.

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 theft as well as uncertainty over the West African country’s tax regime.

The company has hired Scotiabank to run the sale process, but are yet to comment on the issue.

“Chevron Nigeria Limited (CNL), operator of the joint venture between the Nigerian National Petroleum Corporation and CNL, continuously evaluates its portfolio of assets in the country including Oil Mining Leases (OMLs) 86 and 88, as well as emerging opportunities in order to optimize its business,” spokesman Fohr said in a statement.

“Over the years, CNL has received unsolicited expressions of interest from companies who are desirous of acquiring CNL’s interest in OMLs 86 and 88. CNL is currently revalidating their interest before determining next steps with respect to commencing a possible divestment process,” Fohr added.

Chevron tried and failed to sell the two blocks in 2015 when global deal-making in oil and gas dropped sharply following a collapse in oil prices the previous year.

OML 86 and 88 contain 55 million barrels of yet-to-be exploited oil barrels and 79.3 billion cubic metres (2.8 trillion cubic feet) of undeveloped gas reserves, the document said.

Foreign oil companies including Chevron, Royal Dutch Shell and Exxon Mobil have retreated in recent years from onshore and shallow-water production in Nigeria due to oil theft, selling assets mostly to local companies.