THE Nigerian National Petroleum Company Limited (NNPC Ltd.) has begun moves to sell stakes in some of its oil and gas assets, as part of efforts to optimise its portfolio and attract fresh investment into Nigeria’s energy sector, according to a report by Reuters.
The development marks a significant step in the state-owned energy firm’s strategy to reposition itself amid mounting operational challenges, declining investment, and the need for increased capital to boost oil and gas production.
According to an invitation document released on Monday sighted by News Point Nigeria, NNPC has formally called for bids from interested investors, although details on the size of the stakes to be sold and the amount of capital targeted were not disclosed.
“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 Reuters report stated.
NNPC currently holds interests in numerous oil and gas assets, including wholly owned ventures as well as joint operations with international oil companies (IOCs) such as Shell, Chevron, Eni and TotalEnergies.
The invitation document, circulated late last week, outlined a structured bidding process. Prospective bidders are required to register online by January 10, after which a pre-screening exercise will be conducted.
Firms that successfully pass the prequalification stage will gain access to a secure virtual data room, which will contain detailed technical, financial and operational information on the assets on offer.
According to the document, prequalification will be based primarily on the technical competence and financial capacity of bidders. Subsequent stages of the process will include document evaluation, negotiations, and the securing of relevant regulatory approvals.
The move aligns with earlier indications by NNPC that it was considering the sale of at least 25 per cent of the equity it holds in selected oil and gas fields, either through outright divestments or reductions in its participating interests.
That draft proposal, however, had drawn strong opposition from oil sector unions, which expressed concerns over potential job losses, national interest considerations, and the strategic implications of asset sales.
As of the time of filing this report, NNPC had not responded to requests for comment on the latest invitation to investors.
Nigeria, Africa’s largest oil producer, has in recent years struggled to boost crude oil output and sustain investor confidence, amid challenges including regulatory uncertainty, oil theft, pipeline vandalism, and ageing infrastructure.
The country has increasingly relied on incremental production growth, particularly from marginal onshore fields vacated by international oil companies, as it seeks to stabilise output levels and shore up government revenues.
If successfully executed, the divestment programme could mark a turning point in NNPC’s transition into a commercially driven national oil company, while also signalling renewed confidence in Nigeria’s oil and gas investment environment.