Chevron To Sell Two Nigerian Shallow-Water Oil Mining Leases

Chevron has announced plans to sell its interest in two Nigerian shallow-water oil mining leases.

Nigeria’s third-largest crude oil producer says selling leases OML 83 and OML 85 is “part of a continuous process of portfolio evaluation and business prioritization.

The two blocks OML 83 and OML 85 hold an estimated 200 million barrels of oil and an unknown amount of natural gas but there has been no production yet, two industry sources told Reuters. Chevron did not give details of reserves.

“As part of a continuous process of portfolio evaluation and business prioritisation, Chevron Nigeria Limited … has put forward its interests in two oil mining leases for auction,” a company spokesman said.

“The assets are located in the shallow waters.”

Chevron owns a 40 percent stake in 13 shallow water blocks with Nigeria‘s state oil firm NNPC and also has several deep offshore assets. Its 2012 net daily production in Nigeria averaged 238,000 barrels of crude oil and 165 million cubic feet of natural gas.

The company holds interests in 10 deep water oil blocks in Nigeria, including its 250,000 barrel-a-day Agbami field.

Chevron joins companies like royal Dutch Shell PLC and ConocoPhillips in selling their Nigerian oil interests.

Chevron’s blocks are at the exploratory stage, unlike Shell’s already producing fields, which will make valuations less straightforward, one banking source said.

Oil majors, which are looking more towards deepwater offshore, say they can’t invest in large new projects until the oil bill is passed.