Per media reports, U.S. energy giant Chevron Corporation CVX is selling its stakes in two more Nigerian shallow water offshore oil blocks. The sale includes Chevron’s 40% stakes in the Oil Mining Leases (OMLs) 86 and 88, located in the Niger Delta.
Earlier, Chevron had divested its 40% stakes in the OMLs 83 and 85. The properties had been sold to First Exploration & Petroleum Development Company, a Nigerian exploration and production firm.
With the sale of OMLs 86 and 88, Chevron will have divested all the shallow water assets it had acquired with the Texaco buyout. Though no details have been available, the assets under sale are believed to hold substantial resource potential.
Other big names from the energy industry like Royal Dutch Shell plc RDS.A and ConocoPhillips COP have also sold their respective stakes in OMLs located in Nigeria.
Operating in the Niger Delta has been a challenging task for many of these energy majors. This is primarily owing to the oil thefts and pipeline destructions, which hamper production. Tax uncertainties further add to the woes.
San Ramon, CA-based Chevron is one of the largest publicly traded oil and gas companies in the world, in terms of proved reserves. It is engaged in oil and gas exploration and production, refining and marketing of petroleum products, manufacturing of chemicals, and other energy-related businesses.
Currently, Chevron carries a Zacks Rank #3 (Hold).
A better-ranked stock from the integrated oil space is PetroChina Co. Ltd. PTR. The company sports a Zacks Rank #1 (Strong Buy).
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