The Californian oil giant, Chevron is processed to divestion of Oil Mining Lease (OML) 86 and OML 88. The sale process will be run by Scotiabank.
Chevron has launched the sale of its stakes in two Nigerian offshore oil and gas blocks, a sale document seen by Reuters shows, as the company seeks to dispose of aging assets to focus on its fast-growing U.S. production and active in more than 180 countries.
California-based Chevron is offering its 40 percent stake in the shallow-water Oil Mining Lease (OML) 86 and OML 88, which produce approximately 6,200 barrels of oil equivalent per day, which is located in shallow waters of the Niger Delta Basin.
Between 2013 and 2015, Chevron sold its stakes in five acreages, two of them, OMLs 83 and 85, being former Texaco Nigeria assets. Chevron’s largest producing asset in Nigeria, Agbami, is from that turn of the century merger with Texaco; this deepwater field alone produces about half of Chevron’s total operated crude oil production in Nigeria.
Reuters noted that, the sale is also part of a broader retreat by international oil companies from Nigerian oil and gas fields that have been plagued by pipeline theft as well as uncertainty over the West African country’s tax regime.
The company was founded in 1984, but its origins can be traced as far back to 1879 when the Pacific Coast Oil Company was formed. The company was acquired by Standard Oil Co (part of its parent corporation Standard Oil) who then later rebranded the subsidiary to SoCal. This is when it launched the name Chevron for some of its product lines. In 1984 when Gulf Oil and SoCal merged, it was decided the new company would be branded as Chevron Corporation.