Nigeria’s third largest oil producing company Chevron is divesting itself from oil fields in Nigeria as it focuses on growing its U.S. shale output in New Mexico and Texas, as well as investments in banking and industry, sources said. Chevron joins rivals including Exxon Mobil and Royal Dutch Shell in a drive by foreign oil companies to reduce their footprint in Africa’s largest oil producer which has been mired in political and security instability in recent years.
Chevron Is Looking For Buyers
The San Ramon, California-based company is looking for buyers for a number of its onshore and shallow offshore fields in Nigeria , where local producers have expanded their presence.
Chevron’s Nigerian subsidiary operates and holds a 40% interest in 8 blocks in the onshore and near-onshore regions of the Niger Delta under a joint venture with Nigeria’s National Petroleum Company (NNPC), according to its website.
The discussions are being held directly with potential buyers and Chevron is not planning to launch a tender process for the assets at this stage, two of the sources told Reuters.
In 2018, Chevron’s production in Nigeria reached 194,000 barrels of crude oil per day, 233 million cubic feet of natural gas per day and 6,000 barrels of liquefied petroleum gas (LPG) per day, according to its website.
Chevron obtained oil acreage license in Nigeria in 1961.
Chevron has been active producing commercially viable gas in its Western Niger Delta operations and its deepwater operations. Prior to militancy in the Niger Delta, Chevron was Nigeria’s third largest oil producer after Shell and Mobil Producing.
About Chevron Nigeria
Chevron Nigeria Limited is a subsidiary of Chevron Corporation and it is one of the largest oil producers in Nigeria. It was previously operating in Nigeria under the business name of Gulf Oil Company until merger activities changed its name to Chevron Nigeria. After another merger by the parent company with Texaco, the Nigerian oil and gas assets of Texaco Overseas Petroleum Company of Nigeria were merged into Chevron.
In the shallow and inland waters of Nigeria, the firm operates a joint venture with the Nigerian National Petroleum Corporation.
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based Lawyer with special focus on Business Law, Intellectual Property Rights, Entertainment and Technology Law. He is also an award-winning writer. Working for notable organizations so far has exposed him to some of industry best practices in business, finance strategies, law, dispute resolution, and data analytics both in Nigeria and across the world