The Nigerian National Petroleum Company Limited (NNPC Ltd) has begun moves to sell stakes in some of its oil and gas assets, according to a report by Reuters, as the state-owned energy firm seeks to optimise its portfolio and attract fresh investment into the sector.
An invitation document released on Monday shows that NNPCL has called for bids from interested investors. The document does not disclose the size of the equity stakes on offer or the amount the company aims to raise from the exercise.
“The Nigerian National Petroleum Company Limited, the state-owned energy company of top African oil producer Nigeria, plans to sell stakes in some of its oil and gas assets and has called for bids,” the report stated.
NNPCL holds interests in several oil and gas assets across the country. It owns some outright, while others operate under joint venture or partnership arrangements with international oil companies, including Shell, Chevron, Eni, and TotalEnergies.
Bid Process and Timelines
According to the invitation document circulated late last week, prospective bidders must register online by January 10. NNPCL will then conduct a pre-screening exercise, after which qualified firms will gain access to a secure virtual data room containing detailed information on the assets.
Prequalification will depend on the bidders’ technical and financial capacity. The process will progress through document evaluation, negotiations, and the securing of relevant regulatory approvals.
The planned sale aligns with earlier indications from NNPCL that it was considering divesting or reducing at least 25% of its equity in select oil and gas fields as part of a broader portfolio optimisation strategy. That proposal had previously drawn opposition from oil sector unions, which cited concerns over potential job losses and the strategic implications of asset sales. NNPCL did not respond to a request for comment on the latest invitation at the time of filing.
Nigeria, Africa’s largest oil producer, has struggled in recent years to raise crude output and attract sustained investment, amid regulatory uncertainty, oil theft, and ageing infrastructure. The government is now targeting incremental production growth, particularly from marginal onshore fields vacated by international oil companies, to stabilise output and shore up revenues.
Rationale and Sector Context
Industry analysts suggest that the proposed stake sales could unlock fresh capital, enhance asset performance, and attract technically capable operators, provided the divestment process remains transparent and is supported by clear regulatory approvals.
Separately, NNPCL recently concluded a settlement agreement that paved the way for ExxonMobil’s divestment of its stake in Mobil Producing Nigeria Unlimited to Seplat Energy Plc, ending a legal dispute that began in 2022. The national oil company reported revenues of ₦29.21 trillion from crude oil sales in 2024, more than double the ₦14.07 trillion recorded in 2023.