26 oil blocks up for grabs as Shell, ExxonMobil, other IOCs divest from Nigeria

The Nigerian government has announced that four International Oil Companies (IOCs) are set to divest from 26 oil blocks in the country.

According to Gbenga Komolafe, Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), the proposed oil blocks are owned by Nigerian Agip Oil Company, ExxonMobil (Mobil Producing Nigeria Unlimited), EQUINOR, and Shell (Shell Petroleum Development Company of Nigeria Limited).

This 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 the troubled Niger Delta.

IOCs to divest from Nigeria

According to Premium Times, Komolafe made this revelation during an industry dialogue on divestment in Abuja.

He mentioned that Oando is in talks to acquire NAOC assets from Eni, while Seplat is bidding to take over Mobil assets.

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.

Komolafe said:

“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 that these blocks have the potential to boost national production, which will benefit all stakeholders significantly.

He mentioned that S&P Global Commodity Insights (SPGCI) and Boston Consulting Group (BCG) are among the top international consultants specializing in oil and gas decommissioning.

He explained that these consultants will work closely with NUPRC as independent advisors to identify all liabilities associated with end-of-field life and abandonment legacies, following divestment protocols.

It would be recalled that a few months ago, the federal government had denied claims that IOCs were not exiting Nigeria but expanding their investments and portfolio deep offshore.

CBN gives conditions for IOCs to repatriate funds

In related news, Legit.ng reported that the Central Bank of Nigeria had stopped IOCs from repatriating 100% of their crude oil export proceeds.

The CBN disclosed this in a circular signed by Dr Hassan Mahmud, director of the trade and exchange department.

Based on the directive, banks can pool cash on behalf of IOCs, subject to a maximum of 50% of the repatriated export proceeds.

In addition, the balance of 50% may be repatriated after 90 days from the date of inflow of the export proceeds.