Nigerian Government Offers 26 Oil Blocks for Acquisition Amidst Shell, ExxonMobil, and Other IOCs’ Divestment Plans

In a significant development, the Nigerian Government has unveiled plans for the acquisition of 26 oil blocks by local firms, as several International Oil Companies (IOCs) initiate divestment strategies.

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) revealed that IOCs such as Agip Oil, ExxonMobil, EQUINOR, Shell Petroleum Development Company, and others are considering transferring ownership of these oil blocks. The NUPRC emphasized the potential of these blocks to substantially boost national production and benefit various stakeholders.

Gbenga Komolafe, Chief Executive of NUPRC, disclosed these details during an industry dialogue on divestment held in Abuja. He referenced Shell’s recent announcement of plans to divest its Nigeria onshore division SPDC for up to $2.4 billion, as part of its strategic withdrawal from the Niger Delta region.

Komolafe also mentioned ongoing negotiations, including Oando’s discussions to acquire NAOC assets from Eni and Seplat’s bid to take over Mobil assets. Collectively, these 26 blocks hold significant reserves, comprising 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, thereby making a substantial contribution to the nation’s hydrocarbon resources.

Additionally, Komolafe underscored the economic benefits, stating that once operational, a Nigerian refinery yields profits and pays the Federal Government N450 million as dividends. He also highlighted the additional reserves within these blocks, emphasizing their potential to bolster the nation’s energy sector.

Source: Heritage Times