* Bids for three blocks could top $1 billion - sources
* Reserves: 134 mln oil barrels, 5 trln cubic feet gas
* Nigerian firms, partnered with foreign firms, to bid
* Afren, Maurel & Prom have interest in bids - sources
By Joe Brock
ABUJA, Sept 24 U.S.-based Chevron Corp
will receive bids on Sept. 30 from prospective buyers of three
oil blocks in the Niger Delta, with several local Nigerian firms
in the running, industry sources told Reuters on Tuesday.
Oil industry sources estimate the mean value of the three
blocks combined at $500 mln to $600 mln and anticipate winning
bids will be around those levels.
Chevron said in June it would be selling its 40 percent
interest in five onshore blocks, joining Royal Dutch Shell
, Italy's Eni and France's Total in
selling stakes in Niger Delta assets.
U.S. firm ConocoPhillips is also selling its
Nigerian assets to Oando Energy for $1.79 billion.
Chevron wants to sell OML 52, 53 and 55 to one buyer and
suitors will have to pay 15 percent of bids on Sept. 30, three
sources close to the deals told Reuters. The firm will sell two
other blocks, OML 82 and OML 85, in a separate bidding process.
The U.S. firm did not respond to a request for comment.
The three blocks have total oil reserves of around 134
million barrels and 5 trillion cubic feet of gas, two sources
said. One company was willing to bid $1.7 billion for the assets
but it was unlikely it was a credible buyer, the sources said.
Consortium bidders were more likely to be able to raise the
financing necessary, sources said, and as with recent sales of
Shell oil blocks, Nigerian firms, many in partnership with
foreign companies, are likely to win most bids.
Nigeria's South Atlantic Petroleum (SAPETRO), which already
has joint ventures with Total and China's CNOOC, is expected to
bid, as is First Hydrocarbon Nigeria, the local-arm of
London-listed Afren, two sources involved in the deals
Afren declined to comment and SAPETRO did not respond to a
request for comment.
Since 2010 Nigeria has had a policy of encouraging more
direct ownership of its oil and gas by Nigerians, either through
the state oil company or local private firms. That has raised
concerns among foreign oil majors they may lose smaller assets
if they do not sell now, industry experts say.
Worries over oil theft, fraught relations with communities
living around oil fields and uncertainty over a stalled bill to
overhaul fiscal terms has also encouraged majors to sell down.
Many Nigerian firms are backed by powerful political or
business figures. The chairman of SAPETRO is General T.Y.
Danjuma, a former minister of defence and chief of army staff.
SEPLAT, which is partly owned by French oil explorer Maurel
& Prom and Swiss-based commodity trader Mercuria, is
expected to submit a bid, the sources said. SEPLAT did not
respond to request for comment.
Indigenous Nigerian companies who already manage marginal
fields in the delta, including Brittania-U, Vertex, Sogenal and
Seven Energy have shown interest in the blocks, they said.
Chevron owns a 40 percent stake in 13 onshore blocks with
Nigeria's state oil firm NNPC and also has deep offshore assets.
Its 2012 net daily production in Nigeria averaged 238,000
barrels of crude oil and 165 million cubic feet of natural gas.
Nigeria's NNPC, which owns the remaining 60 percent of the
blocks Chevron is selling, has warned prospective buyers that
although the U.S. firm currently operates production of the
blocks, it has the right to hand over the handling of drilling
to its subsidiary NPDC.
Not having operatorship poses significant risks for would be
investors in the fields, not least that NPDC is short on finance
and expertise. It has usually had to call in a third-party to
operate the blocks, pushing up costs.
Africa's biggest oil producer usually pumps 2 million to 2.5
million barrels per day of oil, most of which is exported.
Despite the sales of smaller onshore assets, oil majors like
Shell, Exxon Mobil and Chevron remain keen on expanding
offshore Nigeria and want to keep hold of the biggest fields
onshore, major pipelines and export terminals.