Could they be cutting their losses or switching strategy?
Or are they basically fleeing from what is starting to seem like an untenable position given that one ex-Navy officer-turned-inventor just landed a multi-million deal to produce an electric car battery that will take drivers 1,500 miles without needing to charge?
Or are the calls from climate activists finally starting to sink in and nobody wants to be the bad guy?
Well, those are the speculations that have come to the fore since Reuters let the whole world know that Chevron is seeking to sell several Nigerian oilfields.
The report suggested that Chevron was joining rivals, including Exxon Mobil and Royal Dutch Shell, “in a new move by foreign oil companies to reduce their footprint in Africa’s largest oil producer which has been mired in political and security instability in recent years.”
A part of the report implied that Chevron was “partly” ditching Nigeria as part of a global drive to reposition its portfolio as it focuses on growing its U.S. shale output, and banking and industry.
In view of that, Chevron, which is Nigeria’s third-largest oil producer, is looking for buyers for a number of its “onshore and shallow offshore fields, where local producers have expanded their presence.”
Going by the content on its official website, the Nigerian subsidiary of Chevron operates and holds a 40 percent interest in 8 blocks in the onshore and near-onshore regions of the Niger Delta under a joint venture with Nigeria’s National Petroleum Company (NNPC).
Like its peers, it does own significant onshore oil assets in Nigeria and the decision to divest ought to be with good reasons. And these are some of the possible reasons:
Featured Image Courtesy: OilAndGasPeople
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