Nigerian National Petroleum Company Limited (NNPC), the state-owned energy firm and Nigeria’s leading oil player, has launched a bidding process to sell stakes in several of its oil and gas assets. The information was included in an invitation document recently distributed to interested parties. No figures were disclosed regarding the targeted amount or the size of the stakes on offer.
According to the document, the assets involved include projects fully owned by NNPC as well as others operated in joint ventures with international companies such as Shell, Chevron, Eni and TotalEnergies. The sale is part of a broader strategy by NNPC to optimise its asset portfolio in response to chronic underinvestment and a gradual decline in production.
A structured bidding process
Interested bidders have until January 10 to register via an online platform. The process will continue with a pre-qualification phase based on technical and financial criteria. Qualified companies will then gain access to a secure virtual data room to assess the files.
The process includes document evaluation, bilateral negotiations and the acquisition of necessary regulatory approvals. This approach aims to ensure a competitive process in line with current standards in the hydrocarbons sector.
Targeted portfolio reduction
NNPC had previously outlined a plan to divest up to 25% of its stakes in selected oil and gas fields, either through full exits or partial reductions. This strategic direction triggered opposition from key oil sector unions, who fear a loss of public control over national resources.
Nigeria has faced years of stagnant crude oil production, compounded by the gradual withdrawal of major oil companies from onshore fields. In response, authorities and NNPC aim to revive investment and maintain stable production through marginal fields taken over by local or regional operators.
Responding to major firms’ retreat
The shift by international oil majors towards offshore projects, seen as more profitable and secure, has left several onshore assets vacant. NNPC hopes to fill this gap by attracting new capital through portfolio restructuring. This repositioning could also allow the state company to focus on strategic or higher-yield projects.
The invitation document does not specify the number of assets involved, but the short bidding window and detailed selection criteria indicate a push for swift execution. The success of the operation depends on the market’s ability to respond to these offers in an environment where capital for oil projects is increasingly selective.
