NNPC opens talks to sell stakes in assets – Report

The Nigerian National Petroleum Company Limited has begun moves to sell stakes in some of its oil and gas assets, a new report by Reuters has revealed.

This is as the state-owned energy firm seeks to optimise its portfolio and attract fresh investment into the sector.

An invitation document released on Monday indicated that the national oil company has solicited bids from interested investors, although it did not disclose the size of the stakes on offer or the amount it aims to raise from the exercise.

The report read, “The Nigerian National Petroleum Company Limited, the state-owned energy company of top African oil producer Nigeria, plans to sell stakes in some of its oil and gas assets and has called for bids.”

NNPC holds interests in several oil and gas assets, some of which it owns outright, while others are operated in partnership with international oil companies, including Shell, Chevron, Eni, and TotalEnergies.

According to the document, which was circulated late last week, prospective bidders are required to register online by January 10. This will be followed by a pre-screening process, after which qualified firms will be granted access to a secure virtual data room containing detailed information on the assets.

The document stated that prequalification would be based on the technical and financial capacity of bidders, with subsequent stages involving document evaluation, negotiations, and the securing of relevant regulatory approvals.

“According to the invitation document, which was distributed late last week, interested bidders must register online by January 10, after which pre-screening will follow, and qualified firms will gain access to a secure virtual data room. Prequalification will be based on technical and financial capacity, followed by document evaluation, negotiations, and regulatory approvals,” the report added.

The move aligns with earlier indications by the national oil company that it was considering the sale of at least 25 per cent of the equity it holds in select oil and gas fields, either through outright divestments or reductions in its interests, as part of a broader portfolio optimisation strategy.

That draft plan, however, had attracted opposition from oil sector unions, who raised concerns over potential job losses and the strategic implications of asset sales. NNPC did not respond to a request for comment on the latest invitation at the time of filing this report.

Nigeria, Africa’s largest oil producer, has struggled in recent years to boost crude oil output and attract sustained investment, amid regulatory uncertainty, oil theft, and ageing infrastructure. The country is now banking on incremental production growth, particularly from marginal onshore fields vacated by international oil companies, as it seeks to shore up revenues and stabilise output.

The proposed stake sales could help unlock capital, improve asset performance and draw in technically capable operators, provided the process is transparent and supported by clear regulatory approvals.(Punch)