INDUSTRY FOCUS ANALYSIS
DIVESTMENT OF OIL JOINT VENTURE ASSETS BY THE FEDERAL GOVERNMENT OF NIGERIA: CONSIDERATIONS FOR INVESTORS
The Federal Government of Nigeria (FG) had in May 2019 indicated its plans to divest forty percent (40%) of its interests in the Joint Venture (JV) oil assets jointly shared with the International Oil Companies (IOCs) operating in the Nigerian Oil and Gas sector. The FG's divestment seeks to avoid the inability to fund the cash calls which has characterized its participation over the years under the JV structure. The IOCs include Royal Dutch Shell, Chevron and ExxonMobil who operate in the sector through JVs with the Nigerian National Petroleum Corporation (NNPC), the national oil company.