Market News
Nigeria: 26 Oil Blocks Up For Grabs, As Shell, ExxonMobil, Others Begin Divestment -
By Emmanuel Nduka
The Nigerian Government has disclosed that International Oil Companies (IOCs) have proposed transferring 26 oil blocks to local firms, as they are set to begin divestment.
The IOCs include Agip Oil, ExxonMobil, EQUINOR, Shell Petroleum Development Company, and others, according to the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).
The NUPRC noted that these blocks have the potential to boost national production and benefit stakeholders significantly.
Its Chief Executive, Gbenga Komolafe, recalled that the development follows an earlier announcement by British energy major Shell of plans to sell off its Nigeria onshore division SPDC for up to $2.4 billion, having already flagged its exit from Nigeria’s Niger Delta region.
Komolafe who made this revelation during an industry dialogue on divestment in Abuja recently, mentioned that Oando is in talks to acquire NAOC assets from Eni, while Seplat is bidding to take over Mobil assets.
He noted that these blocks collectively hold an estimated total reserve of 8.211 million barrels of oil, 2,699 million barrels of condensate, 44,110 billion cubic feet of associated gas, and 46,604 billion cubic feet of non-associated gas, making a significant contribution to the nation’s hydrocarbon resources.
The NUPRC boss added that after starting operations, a Nigerian refinery makes profit, pays FG N450 million as dividend.
“Additionally, these blocks contain P3 reserves estimated at 5,557 million barrels of oil, 1,221 million barrels of condensate, 14,296 billion cubic feet of associated gas and 13,518 billion cubic feet of non-associated gas,” Komolafe added.
