NNPC opens bidding for oil, gas asset in fresh portfolio optimisation drive

The Nigerian National Petroleum Company Limited (NNPC Ltd) has commenced a formal bid process for the sale of equity stakes in some of its oil and gas assets, signalling a renewed push to optimise its upstream portfolio and attract private capital into the sector.

Details of the process were contained in an invitation document sighted on Monday, which calls on interested investors to submit bids for selected assets owned outright by NNPC Ltd as well as those held in joint ventures with international oil companies, including Shell, Chevron, Eni and TotalEnergies.

The national oil company has, however, not disclosed the specific assets involved, the size of the equity stakes on offer, or the amount it intends to raise from the exercise.

The planned sale aligns with a broader strategy earlier announced by NNPC Ltd to divest or reduce its equity by at least 25 per cent in select oil and gas fields.

The proposal has previously drawn opposition from oil sector unions, who have raised concerns over job security and the long-term implications of reduced government participation in strategic assets.

According to the invitation document, interested bidders are required to register on NNPC Ltd’s designated online platform no later than January 10, after which a pre-screening process will be conducted to determine qualified participants. Only firms that meet the initial requirements will proceed to the next stage.

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Successful pre-qualified bidders will be granted access to a secure virtual data room containing detailed technical, commercial and legal information on the assets.

Prequalification will be assessed based on clearly defined technical competence and financial capacity, followed by a comprehensive evaluation of submitted documents, negotiations, and the necessary regulatory approvals.

NNPC Ltd said the structure of the bid process is designed to ensure that only investors with proven expertise, strong balance sheets and the capacity to develop the assets efficiently are allowed to participate.

The divestment initiative reflects NNPC Ltd’s evolving commercial strategy under the Petroleum Industry Act (PIA), which repositioned the national oil company as a limited liability entity with a mandate to operate profitably.

By streamlining its asset base, NNPC aims to focus resources on core and strategic fields while leveraging private and international investment to drive growth elsewhere.

The divestment programme comes amid ongoing debate over the balance between state control and private investment in Nigeria’s oil and gas industry.

Labour unions have previously opposed draft plans to reduce government equity in key assets, arguing that such moves could undermine national interests.

The company generated N29.21 trillion from crude oil sales in 2024, more than double the N14.07 trillion recorded in 2023, underscoring the fiscal importance of optimising asset performance and attracting new investment into the sector.