ExxonMobil has disclosed its intention to sell some of its stakes in onshore and offshore fields in Nigeria which is capable of raising $3billion for US shale investment.
According to Oil Price, ExxonMobil held conversations with Nigerian companies to quest if there was still interest in its assets in Nigeria especially as the US supermajor is mainly focused on boosting production in the Permian and developing the huge oil discoveries offshore Guyana.
Reuters reported that Exxon is set to soon open in Nigeria a data room with details about the oil and gas fields it plans to divest. According to the sources, Exxon officials have recently discussed with Nigerian companies stakes in onshore oil fields, in which Exxon participates in joint ventures with the Nigerian National Petroleum Corporation (NNPC).
The U.S. major, however, is also mulling over selling stakes in offshore oil fields. Exxon is one of Nigeria’s largest foreign oil operators and its production in 2017 stood at 225,000 bpd.
On the other, Nigeria has experienced a great difficulty in the international scene for supermajors in recent years with militant violence disrupting export pielines and streams and pipeline vandalism leading to spills.
Meanwhile, the company is now primarily focused on getting the most out of the Permian and of the Guyana discoveries, which are its key growth areas for the coming years. It also plans to significantly boost its earnings and cash flows through 2025 as well as asset sales.
Just last month, Exxon disclosed that “Cumulative cash flow from operations and asset sales over the period from 2019 to 2025 is $24 billion higher than what was communicated at last year’s analyst meeting, including $15 billion from anticipated asset sales from 2019 to 2021”.