• NNPC plans stake sales in oil and gas assets, launches bidding process

• Divestment aims to streamline portfolio and attract investment amid low output

• Oil unions oppose move, warn of revenue losses and legal risks

Nigeria’s state oil company NNPC said on Dec. 29 it plans to sell stakes in selected oil and gas assets, launching a formal bidding process.

Some of the assets are held directly by NNPC, while others are operated in partnership with international oil companies including Shell, Chevron, Eni and TotalEnergies. The company did not disclose the expected value of the sale or the size of the stakes on offer.

Under the timetable released by NNPC, interested bidders must register online by Jan. 10, 2026. Companies will be selected through a pre-qualification process based on technical and financial capacity, followed by document reviews, negotiations and the obtaining of regulatory approvals.

Shortlisted bidders will then be granted access to a secure virtual data room containing detailed information on the assets.

The move reflects an NNPC strategy to divest at least 25% of certain interests, either through outright sales or reductions in joint venture holdings, as part of efforts to streamline its portfolio.

Nigeria is seeking to raise oil output and attract new investment, including through onshore marginal fields abandoned by international operators. The initiative comes as crude production remains sluggish and the country looks to mobilise liquidity amid broader economic pressures.

Union resistance re-emerges

The plan has revived tensions that surfaced in September, when similar proposals drew strong opposition from the country’s largest oil unions.

PENGASSAN and NUPENG opposed plans to cut the state’s stake in some joint ventures from the current 55% to 60% range to between 30% and 35%, arguing the move could reduce public revenue, weaken NNPC’s financial position and put workers’ pay and benefits at risk.

The unions also criticised proposals they said were being considered by the authorities to amend the 2021 petroleum law to alter the management of NNPC assets. They warned such changes could undermine investor confidence and push the company toward bankruptcy.

Union leaders pointed to previous divestments by Eni, ExxonMobil and Shell, some of which were later taken over by local firms, as evidence of the risks of reducing state participation too quickly.

They urged President Bola Tinubu to intervene to safeguard the country’s economic and social interests, warning that rushed legal changes or a transfer of NNPC management to regulators could send negative signals to investors and further weaken Nigeria’s oil sector.

Olivier de Souza