NNPC opens bid to sell stakes in oil, gas assets

The Nigerian National Petroleum Company (NNPC) Limited plans to sell stakes in some of its oil and gas assets and has invited bids from interested parties.

Jerry Amah, the general secretary of Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), confirmed the development to TheCable on Monday.

According to Reuters, which first reported the matter, the company announced the call for bids through an invitation document.

Citing the invitation document, the publication said prospective bidders must register online by January 10, after which a pre-screening process will be conducted, and qualified companies will be granted access to a secure virtual data room.

“Prequalification will be based on technical and financial capacity, followed by document evaluation, negotiations and regulatory approvals,” the report reads.

Reuters said that although NNPC owns some assets outright and others in partnership with international oil companies, including Shell, Chevron, and Eni, the document did not disclose how much it aims to raise.

The publication added that it did not also disclose the size of the stakes on offer.

In September, the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) alleged the federal government plans to sell off significant stakes in joint venture (JV) assets managed by the NNPC.

“The government is wanting to reduce its stake in these assets, principally, they want to sell some huge percentages in these assets. In some places, sell up 35 percent, in some places sell up 30 percent, so that they will have some cash to spend in other areas. That is the excuse that they are giving,” the association said.

PENGASSAN, however, opposed the federal government’s proposed sale.