Nigeria National Petroleum Corporation (NNPC) Towers, Abuja
International Oil Companies (IOCs) operating in Nigeria – Royal Dutch Shell, ExxonMobil, Chevron corporation, Eni, Total and Sinopec that have openly criticised the federal government’s Petroleum Industry Bill (PIB) are in the country to stay, Reuters news agency reported on Monday, quoting unnamed industry sources.
A wave of planned sales of onshore Nigerian assets by these oil majors has prompted speculation that they are finally leaving the Niger Delta because of oil theft, gangsterism and political uncertainty.
According to one of the sources, “in reality, though, foreign firms such as Royal Dutch Shell, Chevron, Eni and Total are here to stay as the federal government woos them with lucrative onshore oil blocks.
“The majors are likely to sell only small blocks that are not worth their while — those assets worst affected by theft and sabotage or fields that risk expropriation in a government push to promote local ownership.
“Meanwhile, the large oil producing blocks, huge gas deposits, key pipelines and the export terminals that control the passage of onshore oil to international markets will most likely stay in their hands — enabling them to retain infrastructure for which they can charge rent to other users,” the agency said.
Complaints by oil majors that Nigeria has done little to combat oil theft or end uncertainty over changes to the fiscal regime by passing the Petroleum Industry Bill (PIB) are genuine, but they won’t drive the firms away from the country.
Shell’s Chief Executive, Peter Voser, nevertheless told Reuters recently the company was not seeking to leave Nigeria.
Eni said it had lost 30,000 bpd of output in the first half of the year to theft, following which its CEO, Paolo Scaroni, said the company was “reviewing its position” in Nigeria.
Total declined to comment on its plans.
Shell, which has already sold eight blocks in the Niger Delta for around $1.8 billion since 2010, announced it will sell more fields amounting to 80,000-100,000 bpd, although it is not clear if this level of output is yet being produced.
Chevron is also selling five shallow water blocks, but would not comment further on its plans for Nigeria, while fellow U.S. firm ConocoPhillips is selling its Nigerian businesses to local investor – Oando for about $1.79 billion.
