Brittania-U Offers $1.2 Billion For Chevron Oil Blocs In Nigeria

Brittania-U Nigeria Limited, a Lagos-based marginal oil field operator, has reportedly offered Chevron a $1.2 billion for 3 of its listed oil blocs, throwing lower bidders into panic. Chevron has been seeking to liquidate its 40 percent stake in blocs OMLs 52, 53, 55, 83 and 85, listing them for sale to local operators. The indigenous oil firm has been rivalled by fellow operators Seplat/Amni Production, Niger Delta Petroleum/SAPETRO and Sahara/Septa – all Nigerian companies – seeking to acquire the reserves-rich fields. The blocs are said to hold oil reserves in excess of 250 million barrels of oil and over 3.5 billion cubic feet of gas, valued at $400 million. Though no official declaration has been made, Brittania-U’s latest bid – believed to be $1 billion higher than other bids – looks set to put an end to the 3-month bidding process. Brittania-U is bidding to buy OMLs 52, 53 and 55, estimated to contain proven oil and gas reserves of 555 million barrels of oil equivalent (MMBOE), a Business Day report revealed. The oil and gas company’s astonishing offer has been supported by an equity financing partner, an arrangement Eddy Wikina, former external relation affairs manager, Shell Nigeria Exploration Petroleum Company (SNEPCO), feels was easy initiated due to the company’s excellent credit rating. “The company was able to pay back the money it borrowed to acquire the Ajapa oil field within one year and because of this its credit rating among money lenders would be high. Bankers would be ready to lend money to such a company to acquire the oil blocs because they know they would not have difficulties getting their money back,” he said. Brittania-U currently produces a little over 5000 barrels per day from its Ajapa marginal field.