Chevron to receive bids for its onshore oil blocks in Nigeria

chevron logoThe combined mean value of Chevron’s three blocks in Nigeria is estimated at between US$500mn and US$600mn. (Image source: Jonathan McIntosh/Flickr)US oil major Chevron has announced that it expects to receive bids for its three onshore oil blocks in the Niger Delta by the end of September 2013

According to Reuters, industry sources have estimated the combined value of the three Nigerian blocks to be between US$500mn and US$600mn.

Chevron officials reporedly said they want to sell blocks OML 52, OML 53 and OML 55 to a single buyer, and companies are expected to pay 15 per cent of the bids on 30 September 2013.

The other two blocks, OML 82 and OML 85, will be sold in a separate bidding process, they added. 

The three blocks reportedly have total oil reserves of around 134mn barrels and 141.6bn cubic metres of gas.

The bidders are expected to be Nigeria's South Atlantic Petroleum (SAPETRO) and First Hydrocarbon Nigeria, the local subsidiary of London-listed Afren. 

Nigerian companies including Brittania-U, Vertex, Sogenal and Seven Energy have also reportedly shown interest in the blocks. 

In June 2013, Chevron announced that it would be selling its 40 per cent interest in five onshore blocks, joining Royal Dutch Shell, Italy’s Eni and France’s Total, who have also recently sold their stakes in the Niger Delta.

Chevron owns a 40 per cent stake in 13 onshore blocks with Nigeria’s state oil firm Nigeria National Petroleum Corporation (NNPC) and also has offshore assets.

In 2012, Chevron’s crude oil production in Nigeria averaged 238,000 bpd and 4.67mn cubic metres of natural gas.

 

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