Nigerian National Petroleum Corp is prepared to take over and operate more assets in Nigeria sold off by foreign oil companies, its CEO Andrew Yakubu said Monday.
NNPC, through its E&P subsidiary the Nigerian Petroleum Development Company (NPDC), has taken over operatorship of four oil blocks sold by Shell since 2010, while US-based major Chevron has announced plans to sell five Nigerian shallow-water oil blocks.
"With the divestment of Shell, NPDC is the top and the only option for indigenous participation that will replace companies like SPDC [Shell] and other companies that wanted to divest their equities," an NNPC statement quoted Yakubu as saying at a meeting of the board of the NPDC.
The NPDC, he said, has been repositioned to ensure that the acquired assets remain productive to boost the company's reserve base and ultimately ensure increases in revenue for Nigeria.
NPDC's crude oil production has averaged 130,000 b/d so far this year, according to NNPC data, while the company has set its sights on raising output to 250,000 b/d by 2015, bolstered by production from fields relinquished by foreign companies.
NPDC took over 55% equity in four onshore oil assets divested by Shell, Eni and Total, including the promising block OML 30, which could be producing around 300,000 b/d in the near future, up from 35,000 b/d now, according to NPDC's partner in the block, UK-listed Heritage Oil.
Nigeria's government is cautiously promoting indigenous ownership of the country's oil assets, prompting foreign oil majors to consider disposing of their smaller assets for reasonable returns, according to local industry analysts.
Shell said June 21 its Nigerian subsidiary is considering exiting a further number of onshore oil blocks in the eastern part of the Niger Delta as part of a strategic review of its business, saying it would consult with its international and Nigerian partners over the future of the 28 leases that produce some 750,000 b/d of oil.
