Chevron is reportedly planning to sell some of its Nigerian oilfields in order to focus on U.S shale oil production, joining its competitors such as Exxon Mobil and Royal Dutch Shell in divesting from Nigeria.
Chevron, which is Nigeria’s third-largest oil company in term of production, is looking for buyers for its onshore and shallow oil fields where local producers have increased operations and production. Chevron is reportedly in direct talks with potential buyers and is planning not to launch a tender process for the sale of the assets.
According to its website, Chevron Nigeria operates and owns 40% of the interest in 8 oil blocks in the onshore and near onshore regions of the Niger Delta under a joint venture with Nigeria National Petroleum Corporation (NNPC)
Meanwhile, 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.
Recent development: Earlier in the year, Exxon Mobil considered divesting from Nigeria, putting up its stakes in both onshore and offshore sites for sale. Exxon was reportedly expected to raise about $3 billion from the sale of its assets, and by 2021 would have raised $15 billion from divestment.
By spending close to $30 billion this year, Exxon seeks to develop oilfields in Guyana and the U.S. Permian basin as well as gas projects in Mozambique and the U.S. Gulf Coast.
However, the Nigerian government has in the last decade supported a drive by domestic firms such as Oando, Seplat and privately-held Aiteo to expand their operations in the country as international companies including Royal Dutch Shell sought to lower their presence due to oil spills resulting from pipeline sabotage.