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Home»Energy»Oil & Gas»Chevron Puts On Sale 40% Stakes in Two Oil Blocks
Oil & Gas

Chevron Puts On Sale 40% Stakes in Two Oil Blocks

By orientalnewsngJune 24, 2015No Comments3 Mins Read
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Yemisi Izuora

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U.S. oil major, Chevron Corporation is concluding plans to sell its 40 percent stakes in two more Nigerian shallow water offshore oil blocks, Oil Mining Leases (OML) 86 and 88 in the Niger Delta area.

Chevron in February completed the sale of its 40 percent stakes in two Nigerian shallow water offshore oil blocks, OML 83 and 85, to local firm First Exploration & Petroleum Development Company Limited (First E&P).

Reuters reported that, oil theft, pipeline vandalism and uncertainty over taxes in Nigeria’s proposed oil bill, which is still in the making, has been holding back billions of dollars in investment, especially in capital-intensive deepwater offshore blocks, leading some multinational upstream firms to sell them.

Last year, Oando completed the acquisition of ConocoPhillips’s upstream oil and gas business in Nigeria.

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.

Yemisi Izuora

U.S. oil major, Chevron Corporation is concluding plans to sell its 40 percent stakes in two more Nigerian shallow water offshore oil blocks, Oil Mining Leases (OML) 86 and 88 in the Niger Delta area.

Chevron in February completed the sale of its 40 percent stakes in two Nigerian shallow water offshore oil blocks, OML 83 and 85, to local firm First Exploration & Petroleum Development Company Limited (First E&P).

Reuters reported that, oil theft, pipeline vandalism and uncertainty over taxes in Nigeria’s proposed oil bill, which is still in the making, has been holding back billions of dollars in investment, especially in capital-intensive deepwater offshore blocks, leading some multinational upstream firms to sell them.

Last year, Oando completed the acquisition of ConocoPhillips’s upstream oil and gas business in Nigeria.

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.

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