Chevron Nigeria Joins The Divestment Train

Chevron Nigeria has put, on the auction block, its 40% stakes in Oil Mining Leases (OMLs) 83 and 85, in shallow offshore, central Niger Delta.
The data room has been opened in the company’s office in Lekki, a growing suburb in the east of Lagos.

The sale is coming on the heels of the recently completed divestment by Shell led Shell-TOTAL-ENI in four acreages onshore Niger Delta and the ongoing sale of ConocoPhillips’ interests in Nigeria.
The difference, this time, is that, whereas the Shell led and CononocoPhillips assets are producing properties, Chevron’s OMLs 83 and 85 are both undeveloped.

Still, OML 83’s Anyala and OML 85’s Madu fields are very prospective properties that have been the talk of the upstream property market in Nigeria for upwards of eight to 10 years.

With Chevron having reportedly sent out invitations to 20 interested Nigerian companies and Nigerian-led consortia, bids are due by August 15, 2013.

Chevron “inherited” Anyala and Madu,  with its acquisition of Texaco in the late 90s. The fields themselves had only been discovered in the early 1990s and Chevron, though willing to increase output, had kept putting off sanction for their development.  Both have been said to have a combined reserves in place put at around 250MMBbls of oil and 500 Bcf of gas.

This will be another keenly contested activity: Nigerian authorities have not organized an official lease sale for the past six years;  these divestments by majors operating in the country have replaced what could have been regular bid rounds.


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