A Review of the Nigerian Energy Industry

Chevron to sell stakes in two oil blocks

25 June 2015, Lagos – United States oil company, Chevron Corporation, said on Wednesday that it was selling its 40 per cent stakes in two more Nigerian shallow water offshore oil blocks.

ChevronThe oil blocks, according to Reuters, are Oil Mining Leases 86 and 88 in the Niger Delta area.

Chevron had in February completed the sale of its 40 per cent stakes in two Nigerian shallow water offshore oil blocks, OMLs 83 and 85, to a local firm, First Exploration & Petroleum Development Company Limited.

The General Manager, Policy, Government and Public Affairs, Chevron Nigeria Limited, Mr. Deji Haastrup, had confirmed this to our correspondent in an email.

Chevron had said the sale of its interest in OMLs 83 and 85 started two years ago.

First E&P was quoted as saying that the acquisition was completed in February, with state-owned oil firm, Nigerian National Petroleum Corporation, holding the balance of 60 per cent.

It said full seismic data had been acquired for both OMLs 83 and 85 acreages but production had yet to commence on both fields, which are located in the Niger Delta region.

On the initial sale, Haatrup said, “Yes, the transfer of CNL’s 40 per cent interests in OML 83 and OML 85, which started in 2013, has been successfully concluded. CNL’s 40 per cent interests in OMLs 83 and 85 have been transferred to First Exploration & Petroleum Development Company Limited.

“This is part of our continuous evaluation of opportunities and the need to prioritise our portfolio. We are a big company with a large asset base. We believe there are smaller companies who would find these assets a perfect fit for their business profile and portfolio.”

Chevron had in 2013 announced its intention to divest its stakes in two shallow water oil blocks in the country.

The company had said both blocks, OMLs 83 and 85, held an estimated 200 million barrels of oil and an unknown quantity of natural gas.

It, however, stated that there had been no production yet in the two blocks.

“As part of a continuous process of portfolio evaluation and business prioritisation, Chevron Nigeria Limited has put forward its interests in two oil mining leases for auction,” a spokesman of the firm was quoted as saying two years ago.

– Punch

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