Nigeria warns oil block buyers could lose operating rights

Nigeria's state oil company warned investors interested in three shallow water oil blocks offered for sale by Chevron that buyers may lose the right to operate them. U.S.-based Chevron is selling minority stakes in joint ventures that operate five oil blocks. The majority owner is the Nigeria National Petroleum Corporation (NNPC). Nigeria wants more direct ownership of its oil and gas through NNPC or local firms, leading several oil majors including Chevron to dispose of assets in Africa's top oil and gas producer. NNPC published a notice in local newspapers saying that there had been a "recent high level of interest shown by various investors in the ongoing divestment program for OMLs 52, 53 and 55 by Chevron Nigeria". It reminded those considering investing that, although Chevron currently operates the blocks, the state oil firm has the right to take over the operatorship as majority shareholder. Chevron owns 40 percent of the blocks and NNPC 60 percent. "Chevron shall cease to be the operator upon assignment of their participating interest," it said. "Therefore prospective buyers should note that automatic operatorship does not come with the acquisition of any of these blocks." Not having operatorship poses significant risks for would be investors in the fields, not least that the NNPC's development subsidiary, NPDC, lacks the finance and expertise. It has usually had to call in a third-party operator anyway. The notice seemed calculated to avoid messy tussles that ensued when Shell sold some oil blocks two years ago.

FG feigns ignorance of Chevron’s plans to sell oil bloc stakes

The Federal Government, the majority partner in the Oil Mining Lease (OML) 35 and 38, has denied knowledge of plans by Chevron Corporation to sell stakes in two Nigerian oil blocks.

This declaration, may have however, swiftly heightened fears among prospective investors in the blocks.

Chevron is, according to the Nigerian National Petroleum Corporation (NNPC), expected to officially inform the government, which, through the NNPC owns about 55 per cent stake in the blocks purportedly up for sale before announcing such.

The oil major is the latest International Oil Company (IOC), operating In Nigeria’s multi-billion dollars oil and gas industry, seeking to dispose of assets in Africa’s biggest oil producer. Joint blocks’ owners like Royal Dutch Shell, Italy’s Eni and France’s Total have sold several blocks.

The two newest blocks for sale also hold an unknown amount of natural gas but there has been no production yet, Reuters reported quoting two industry sources.

Chevron to Sell 40% Stake in Two Oil Blocks

Chevron Nigeria Limited (CNL) will be selling its 40 per cent stake in two Nigerian shallow water oil blocks in Oil Mining Leases (OMLs) 83 and 85. Chevron has 40 per cent interest in the two blocks.

The two blocks OML 83 and OML 85 hold an estimated 200 million barrels of oil and an unknown amount of natural gas but there has been no production yet. Chevron did not give details of reserves. The planned sale follows several oil majors’ sale of assets onshore or in the shallow waters of the Niger Delta over the past few years.

Oil industry analysts believe that the slow pace of deliberation in the passage of the PIB amongst all these other factors, have added to a growing uncertainty in the country’s oil and gas industry.

Joint owners, Royal Dutch Shell, Italy's Eni and France's Total, have sold several oil blocks in the oil-bearing region, while eventual buyers of these included UK-listed firms Heritage Oil and Eland Oil.

Chinese-owned Addax has also said it was interested in buying more Nigerian oil assets in addition to what it has already.

Chevron's blocks are at the exploratory stage, unlike Shell's already producing fields, which will make valuations less straightforward, one banking source said.

Chevron owns a 40 per cent stake in 13 shallow water blocks with the Nigerian National Petroleum Corporation (NNPC) and also has several deep offshore assets.  Its 2012 net daily production in Nigeria averaged 238,000 barrels of crude oil and 165 million cubic feet of natural gas.

It is the third-largest oil producer in Nigeria and one of its largest investors, spending more than $3 billion annually. It operates under a joint-venture arrangement with NNPC and has assets on land, swamp and near-offshore concessions covering approximately 2.2 million acres (8,900 sq. km) in the Niger Delta region.

Chevron hits Moroccan deep-water blocks

US supermajor Chevron has been awarded three new deep-water blocks off Morocco on 75% stakes. Moroccan hydrocarbon regulators ONHYM will retain a 25% stake in the block trio.

Chevron’s exploration president for Africa and Latin America Ali Moshiri said that the awards offered “promising geology in an emerging area”. The company’s vice chairman George Kirkland said entering Morocco was another step advancing Chevron’s frontier basin growth strategy.

The San Ramon, California-headquartered giant said that it would start with acquiring seismic data and conducting field studies on the deep-water trio, known as Cap Rhir Deep, Cap Cantin Deep and Cap Walidia Deep.

The blocks are located between 60 and 120 miles west and northwest of Agadir in the country's southwest. Totalling around 11,300 square miles in area, the blocks lie in average water depths ranging from between 330 feet and 14,700 feet.

Chevron N1 billion Delta tax revenue missing

The alleged disappearance of over N1 billion tax deductions paid by one of the multi-national oil companies, Chevron Nigeria Ltd, through an old generation bank to a new era bank that collects revenue for the government of Delta State has stirred misgivings between the two financial institutions.
Delta State Board of Internal Revenue (DBIR) is striving to trace in which bank’s possession the missing money is.
It was learnt that Chevron mandated her bankers (the old era bank) to transfer the N1 billion to the state government’s coffers through its collecting bank (the new generation institution), but the money which was allegedly paid since December 27, 2012, has not been credited.
The old bank is firmly insisting that the money has been successfully transferred into DBIR’s account with the new one, which, however, insisted that it had not received the fund.
DBIR’s Executive Chairman, Joel-Onowakpo Thomas has confirmed the development, saying: “It is true that the over N1 billion paid by the multi-national oil company is missing between the two banks.

Chevron announces $36.7 billion capital and exploratory budget for 2013

Chevron Corporation has announced a $36.7 billion capital and exploratory investment program for 2013. Included in the 2013 program are $3.3 billion of planned expenditures by affiliates, which do not require cash outlays by Chevron.
According to the Chairman and CEO John Watson, “Next year’s program supports several projects currently under construction, including our Australian LNG projects and United States deepwater developments. As these and other projects come online, we anticipate production will reach our 2017 goal of 3.3 million barrels per day. With our strong balance sheet and industry-leading producing margins, I further expect to continue our pattern of significant stockholder distributions.”
Approximately 90 percent of the 2013 spending program is budgeted for upstream crude oil and natural gas exploration and production projects. Another 7 percent is associated with the company’s downstream businesses that manufacture, transport and sell gasoline, diesel fuel and other refined products, fuel and lubricant additives, and petrochemicals.