Anticipation of Nigeria's breakup: Multinational oil giants sell off oil blocks in Nigeria in droves

Anticipation of Nigeria's breakup: Multinational oil giants sell off oil blocks in Nigeria in droves

In anticipation of the breakup of Nigeria, multinational oil giants that have operated in the country for decades are divesting their interests in drove. The latest in line is the French-owned Total who sold of its last onshore oil block to an indigenous company.

Total said Monday that it sold its stake in a Nigerian oil field to a local company for $569 million (523 million euros). Total’s sale of its share in the onshore Oil Mining Lease 29 to Aiteo Eastern E&P comes after the French group made two similar divestments in Nigeria. The three transactions reached a sum of $1 billion.

According to Total’s Chief Financial Officer, Patrick de La Chevardiere “These transactions reduce our exposure to non-operated blocks onshore Nigeria, and allow us to focus on our core, operated developments.”   In an apparent bid to disguise their real motive, the French oil giant added that the divestment is “in line with the Federal Government of Nigeria’s aim of developing Nigerian companies in the sector”.

Nigeria set to breakup into different composing nationalities

Other oil giants operating in Nigeria have been selling off their assets in the Nigerian oil sector. Early this year Chvron sold its oil blocks in Nigeria. It sold one (OML 53 onshore north eastern Niger Delta), to Seplat Petroleum Development Company Plc at $259.4 million and another to Belema Oil.

Thisday reported in August 2014 that the Anglo-Dutch oil multinational, Shell, is in the process of concluding the sale of some of its four Nigerian oil blocks in a $5 billion deal, as part of the company’s plan to dispose of $15 billion of its global assets in 2014 and 2015 to cut costs and boost profits.

The oil major had in 2013 offered for sale its 30 per cent equity in four oil blocks – Oil Mining Leases (OMLs) 18, 24, 25, 29 – as well as the $1.1 billion Nembe Creek Trunk Line, a key pipeline in the eastern Niger Delta.

Total and ENI are also set to sell 10 per cent and five per cent respectively in the four Nigerian leases.

It is widely anticipated that the announcement of the result of the recently concluded elections in Nigeria would trigger the breakup. Anxiety is currently hanging over the country.