OML, 52, 53 and 55 – Buyer Beware

OML, 52, 53 and 55 – Buyer Beware

The Nigerian National Petroleum Corporation, NNPC, Thursday, said it will revoke the operating licenses of the three oil blocks put up for sale by Chevron Nigeria upon their acquisition by a new investor.
NNPC, in a notice, yeterday, issued a caveat to proposed buyers of the three oil blocks offered for sale by Chevron, saying that acquisition of the blocks does not guarantee automatic license to operate the blocks. The warning becomes necessary in the light of recent high level interest shown by various investors in the ongoing divestment programme for Oil Minerals Licenses, OML, 52, 53 and 55 by Chevron Nigeria.
The NNPC stated that although Chevron currently operates the blocks, the right to take over the operatorship of the oil blocks rests with the NNPC, being the majority shareholder with 60 per cent stake compared to Chevron’s 40 per cent. “Chevron shall cease to be the operator upon assignment of their participating interest.Therefore prospective buyers should note that automatic operatorship does not come with the acquisition of any of these blocks”.
Oil and Gas Press

#FOLLOW US ON INSTAGRAM