Nigerian petroleum marketing company, Conoil, may soon acquire oil giant Chevron‘s stake in two Nigerian oil blocks.
Conoil is close to acquiring the U.S. oil major’s stake in both OMLs 86 and 88, S&P Global Platts reported Thursday, quoting a Chevron spokesperson.
While the OML 86 has six fields with only two producing at very low levels, OML 88 is a shallow water block with two producing fields and significant gas reserves.
Both blocks, with a combined potential of 60 million barrels in oil reserves, are located in the Niger Delta.
Although negotiation is yet to be concluded, Ray Fohr, Chevron spokesperson, told S&P Global Platts that the process of divesting the company’s 40 per cent interest in both OMLs is ongoing.
Apart from Chevron’s 40% stake, Nigeria’s state-owned oil firm, Nigerian National Petroleum Corporation (NNPC), holds the remaining 60 per cent stake in both blocks.
Earlier in 2016, Chevron offered to sell its interest in both blocks but the process slowed.
On Thursday, S&P Global Platts quoted sources who claimed that Conoil emerged tops among the bids submitted for the acquisition of the 40 per cent interest held by Chevron in both blocks.
Last October, Chevron Nigeria Limited announced a 25 per cent job cuts amidst plans to review its “manpower requirements in the light of the changing business environment”.
Naija247news reported how the company said it will continue to evaluate opportunities to improve capital efficiency and reduce operating costs.
“In this process, the company will be streamlining its workforce and improving service delivery and overall performance at all levels,” the company said in a statement signed by Esimaje Brikinn, General Manager, Policy, Government and Public Affairs.
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Like Chevron, many oil producers have devised sundry means to reduce costs and shore up revenues in the wake of the crash in global oil prices due to the coronavirus pandemic.
On Tuesday, the International Monetary Fund (IMF) projected a 21 per cent rebound in crude oil prices in 2021.