The Nigerian National Petroleum Company Limited (NNPC Ltd) has commenced plans to divest stakes in selected oil and gas assets while negotiating about $2 billion in new financing to rehabilitate critical pipeline infrastructure, as it pushes to revive production and attract fresh investment.
A Reuters report said NNPC has already issued an invitation for bids for some of its oil and gas assets. Interested companies are required to register online by January 10, after which a pre-screening exercise will be conducted. Successful firms will then be granted access to a secure virtual data room.
According to the invitation document, prequalification will be based on both technical competence and financial capacity, before advancing to document evaluation, negotiations and regulatory approvals.
The planned divestment has, however, rekindled resistance from major oil sector unions. In September, the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) and the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG) opposed government plans to reduce its stakes in joint venture (JV) assets operated by NNPC.
The unions warned that cutting government equity by 30–35 per cent from the current 55–60 per cent could weaken the oil industry, destabilise the economy and threaten jobs.
Nigeria has struggled to increase crude oil output in recent years and is now relying on marginal onshore fields vacated by international oil companies to drive incremental production growth.
In a separate report, Bloomberg disclosed that NNPC is in talks with Nexus Alliance for a $2 billion financing deal aimed at overhauling the country’s oil and gas pipeline network.
Nigeria’s more than 5,000 kilometres of pipelines have suffered years of neglect, vandalism, theft and ageing infrastructure, leaving many major crude and gas lines operating below capacity or shut down entirely.
People familiar with the discussions said NNPC expects to receive the funds early next year and will channel them into repairing vandalised pipelines, upgrading infrastructure and reducing leakages.
The company has been seeking fresh capital as part of a broader refinancing effort, including talks with lenders in Saudi Arabia, as it targets crude production of at least 1.8 million barrels per day and higher gas output.
(Hallmark )
