Chevron is selling its stake in two Nigerian shallow water oil blocks, as the US oil giant follows other energy companies in selling assets in Africa’s biggest, but troubled, oil producer.
Chevron is selling its interests in two oil mining leases OML 83 and OML 85.
Chevron operates and holds a 40-per cent interest in 13 concessions under a joint-venture arrangement with the Nigerian National Petroleum Corporation and has interests, ranging from 18 per cent to 100 per cent, in four operated and six non-operated deepwater blocks and natural gas projects in the western Niger Delta and Escravos areas.
In 2012, Chevron’s net daily production in Nigeria averaged 238,000 barrels of crude oil, 165 million cubic feet of natural gas and 4,000 barrels of LPG.
Chevron is the third-largest oil producer in Nigeria and one of its largest investors, spending more than $3 billion annually.
Many oil companies have been selling their interests in some of their onshore shallow water oil blocks, due to militancy and rampant oil theft.
Royal Dutch Shell, Italy’s Eni and France’s Total have recently sold stakes in Nigerian oil blocks, while ConocoPhillips announced in December 2012 that it will sell its Nigerian businesses to Oando Energy for about $1.79 billion.
Brazilian energy giant, Petrobras has set in motion an auction to sell its interest worth $5 billion in Nigerian oil fields.