In a significant strategic move, the Nigerian National Petroleum Company Limited (NNPC Limited) has officially commenced a process to divest portions of its holdings in select oil and gas assets. The state-owned energy giant has opened a bidding round, inviting interested investors to acquire stakes.
Bidding Process and Key Deadlines
The development was confirmed to Reuters by Jerry Amah, the General Secretary of the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN). According to details, NNPC Limited announced the call for bids through an official invitation document.
Prospective bidders are required to complete their registration online by January 10, 2026. The company outlined a structured pre-qualification procedure. This will involve a pre-screening phase where the technical and financial capabilities of applicants will be assessed.
Companies that meet the initial criteria will be granted exclusive access to a secure virtual data room containing pertinent asset information. The full selection process will progress through several stages:
- Technical and financial capacity evaluation.
- Detailed document assessment.
- Negotiations with shortlisted parties.
- Final regulatory approvals.
Asset Portfolio and Union Concerns
The invitation document did not specify the exact financial target NNPC aims to raise from the divestment. The company's asset portfolio is a mix of wholly-owned properties and others held in partnership with major international oil companies (IOCs) such as Shell, Chevron, and Eni.
This move follows earlier allegations by PENGASSAN, which had raised concerns about the Federal Government's plans to reduce its stake in joint venture (JV) assets managed by the NNPC. The union had stated that the government intended to sell significant percentages, sometimes up to 30-35%, in these assets.
The rationale provided, according to PENGASSAN, was to generate immediate cash for expenditure in other areas of the economy. This planned divestment in key national assets had sparked discussions about energy sector strategy and resource management.
Strategic Implications for Nigeria's Energy Sector
This divestment initiative marks a pivotal moment in the operations of the commercialized NNPC Limited. Opening these assets to private investment could potentially inject fresh capital and technical expertise into the operations.
However, it also brings to the fore ongoing debates about national ownership of strategic resources and the long-term vision for Nigeria's hydrocarbon industry. The coming weeks leading to the January 10 deadline will be crucial in gauging investor interest and the future shape of these vital national assets.
