Xom weighs sale of Nigerian O&G fields for up to $3B

ExxonMobil has held talks on the sale of a number of oil and gas fields in Nigeria, as the company focuses on developments in the U.S.’s Permian Basin and Guyana, industry and banking sources told Reuters.

The potential sales are expected to include stakes in onshore and offshore fields and could raise up to $3 billion, two sources said.

ExxonMobil declined to comment.

The Irving, Texas-based company is one of the largest oil and gas producers in Nigeria, with 106 operated platforms, Kallanish Energy learns. Its oil output in the West African country reached 225,000 barrels per day in 2017, its website reveals.

ExxonMobil executives have held talks in recent weeks with several Nigerian companies to gauge their interest in the fields.

The discussions focused on onshore fields ExxonMobil shares in joint ventures with Nigerian state oil firm Nnpc, including oil mining leases 66, 68, 70 and 104, one source told Reuters.

ExxonMobil’s share of oil production in those fields reached 120,000 Bpd in 2017, the last year for which data was available.

ExxonMobil is also weighing the possible sale of stakes in offshore fields in Nigeria, two sources told Reuters. It is looking into offering for sale assets in Equatorial Guinea and Chad, according to two sources.

ExxonMobil has launched the sale of its stake in Azerbaijan’s largest oilfield, which would mark its exit from the former Soviet state after a quarter-century.

The oil supermajor announced earlier this year plans to boost capital spending from $26 billion in 2018, to $30 billion in 2019, and up to $35 billion in 2020, as it seeks to develop assets in the U.S. Permian Basin and Guyana, as well as natural gas projects in Mozambique and the U.S. Gulf Coast.

This post appeared first on Kallanish Energy News.