The
current wave of divestments of oil and gas assets by the international
oil companies (IOCs) to increase indigenous participation in the
industry has received a boost as Chevron has unfolded its plan to offer
two more oil blocks to prospective investors.
The US oil
major, it was learnt, plans to divest 40 per cent from Oil Mining Leases
(OMLs) 86 and 88, both located in shallow waters off Bayelsa State,
bringing to seven the number of oil blocks sold by Chevron since 2013.
Chevron had sold its stakes in OMLs 52, 53, 55, 83 and 85 in a string
of divestments carried out by the IOC within the two-year period.
After
the sale of OMLs 86 and 88, Chevron would have disposed of all the
shallow water assets it inherited after the acquisition of Texaco in the
late 1990s.
It
was gathered from competent Chevron sources that OML 86 hosts the
Funiwa field, including Funiwa 1A natural gas well, which was engulfed
in fire on January 6, 2012 when KS Endeavor, a drilling rig, operated by
FODE Drilling Nigeria Limited, was drilling a gas exploration well for
US multinational.
The sources could not confirm the total
resources and upside potential of the two oil blocks but it was gathered
that the two assets hold considerable resource potential.
According to the sources, Funiwa produces over 1,500 barrels of oil equivalent per day.
OML 86 also contains the Buko, Sengana, Okubie and Apoi fields, with
North Apoi being the largest producer with a production capacity of
about 3,300 barrels of oil equivalent per day.
It was also
learnt that OML 88 contains an undeveloped condensate discovery – Chioma
field, as well as Pennington and Middleton fields.
A top official of the Nigerian National Petroleum Corporation (NNPC) told ThisDay that the corporation was unaware of the plan by Chevron to sell its stake in the two blocks.
He also pointed out that “the Petroleum Act of 1969 provides that the
prior consent of the Minister of Petroleum Resources must be obtained
before the assignment of any rights, power or interest in any Oil
Prospecting Licence (OPL) or Oil Mining Lease”.
The federal
government has expressed reservation over the usual approach of seeking
ministerial consent by the divwesting parties after the divestment has
been consummated, pointing out that it puts undue pressure on the
minister and also makes it difficult for due diligence to be carried out
by the government on the capability of the new buyers to operate the
assets.
Chevron and Shell, alongside their joint venture
partners, recently concluded the sale of their interests in OMLs 71, 72,
83 and 85 to a Nigerian independent company, First Exploration &
Petroleum Development Company Limited (First E&P), after over a
year’s delay due to lack of ministerial consent.
Shortly before
the close of the transactions on the four blocks, Shell had concluded
the sale of OMLs 29, 52, 55, 18, 24 and 53 to Aiteo E&P, Amni
Petroleum, Belemaoil, Erotron, Newcross and Seplat Petroleum.
Credit: Ejiofor Alike/ThisDay
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