Chevron, the U.S. energy giant, has launched the sale of its interests in two Nigerian offshore oil and gas blocks as part of its strategy to divest aging assets and prioritize its growing U.S. production.
The company is offering its 40 percent stakes in Oil Mining Lease (OML) 86 and OML 88, located in shallow-water areas, with current production levels at around 6,200 barrels of oil equivalent per day.
The move reflects a broader trend among international oil companies, including Chevron, to scale back their operations in Nigeria due to challenges such as pipeline theft and uncertainty surrounding the country’s tax policies.
Chevron has engaged Scotiabank to oversee the sale process, aiming to optimize its portfolio of assets in Nigeria while exploring emerging opportunities.
Ray Fohr, a spokesperson for Chevron Nigeria Limited (CNL), stated that the company continuously evaluates its assets in Nigeria and has received expressions of interest from potential buyers for OMLs 86 and 88.
CNL is currently assessing these expressions of interest before deciding on the next steps regarding a possible divestment.
This move comes after Chevron’s unsuccessful attempt to sell the blocks in 2015 amid a downturn in global oil and gas deal-making following a decline in oil prices.
OML 86 and 88 hold significant reserves, including 55 million barrels of yet-to-be-exploited oil and 2.8 trillion cubic feet of undeveloped gas.
In recent years, foreign oil companies operating in Nigeria have shifted their focus away from onshore and shallow-water production due to challenges like oil theft, often divesting their assets to local firms.
