Chevron to divest interest in two Nigerian oil blocks

Chevron has launched the sale of its stakes in two Nigerian offshore oil and gas blocks, Oil Mining Licenses (OMLs) 86 and 88, according to Reuters.

Reuters reported on Thursday that it saw documents that showed the proposed divestment as the company seeks to dispose of ageing assets to focus on its fast-growing U.S. production.

Chevron has 40 per cent stakes in the shallow-water OMLs 86 and 88, which produce around 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 Nigeria’s tax regime due to non-passage of the petroleum industry bill (PIB).

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Chevron is reported to have hired Scotiabank to run the sale process.

Chevron did not reply to a request for comment. Scotiabank declined to comment.

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 in 2014.

OMLs 86 and 88 contain 55 million barrels of yet-to-be exploited oil barrels and 2.8 trillion cubic feet of undeveloped gas reserves, the document says.

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.

Recently, ExxonMobil was also reported considering divestment in some oil blocks in Nigeria.