Nigeria’s state owned energy company, NNPC Limited, plans to sell stakes in some of its oil and gas assets and has invited bids from private investors, according to an internal invitation document seen by Reuters on Monday.
The document shows that NNPC is offering interests in assets it owns outright as well as those held in partnership with international oil companies such as Shell, Chevron, Eni and TotalEnergies.
However, it did not disclose the size of the stakes on offer or how much the company hopes to raise from the sales. NNPC did not respond to a request for comment.
According to the document, interested bidders must register online by January 10.
Pre screening will follow, after which qualified firms will gain access to a secure virtual data room.
The process will include technical and financial assessments, document reviews, negotiations and regulatory approvals.
NNPC has previously outlined plans to sell at least 25% of the equity it holds in select oil and gas fields through full divestments or stake reductions.
Oil sector unions have opposed the plan, raising concerns about jobs and national control of strategic assets.
Why NNPC may be offloading some assets
Meanwhile, NNPC’s decision to sell stakes in some oil and gas assets is linked to its wider plan to restructure its portfolio.
The company has said it wants to focus on assets that generate stronger returns. Selling non-core or underperforming assets is seen as a way to achieve this goal.
Nigeria’s oil production has faced repeated challenges in recent years. These include theft, ageing infrastructure and funding constraints.
These issues have reduced output and revenue for both NNPC and the government.
Asset sales offer NNPC an opportunity to attract fresh capital. New investors can also bring technical expertise to fields that require upgrades or better management.
The company is also under pressure to operate more like a commercial entity. Since its transition to NNPC Limited, profitability and efficiency have become key targets.
Fewer assets could allow management to focus on improving performance where it matters most.
The oil company’s rising debt portfolio
On the other hand, NNPC has built up significant debt over the years, much of it linked to crude backed financing arrangements.
Some of these obligations were classified as legacy debts. They were accumulated before recent reforms in the oil sector. These debts limited NNPC’s ability to invest and meet other financial commitments.
Recently, the federal government approved the write off $1.42 billion legacy debts owed by the oil firm to the national treasury.
However, the debt relief did not cover newer obligations. NNPC still carries recent liabilities tied to ongoing operations and supply arrangements. These continue to weigh on its finances.
A shift in NNPC’s management causing operational change
NNPC has experienced major leadership changes over the past year. A new chief executive and board were appointed as part of a broader reform drive in April this year.
The new leadership has emphasised efficiency and accountability.
The management has also signalled openness to private sector participation. This includes partnerships, joint ventures and asset sales. The goal is to attract investment without relying solely on government funding.
Operational reforms are being aligned with financial restructuring. Asset optimisation has become a key part of this strategy.
These changes suggest NNPC is positioning itself for a more commercial future.
Some potential buyers of the assets
Lastly, recent transactions in Nigeria’s oil sector provide clues about potential buyers. International oil companies have been selling assets in the country in recent years. Many of these assets were acquired by local firms.
One of the most notable deals involved Seplat Energy. The company acquired shallow water assets previously owned by ExxonMobil after a long regulatory process. The deal showed that local firms have the capacity to take over large assets.
Private equity backed energy companies have also shown interest in Nigerian assets. Some have partnered with local operators to enter the market. These investors may also look closely at NNPC’s planned sales.
With a mix of local and international investors active in the sector, competition for NNPC’s assets is expected.
