NNPC Moves to Sell Stakes in Oil and Gas Assets as It Seeks Fresh Investment and Portfolio Rebalancing

 Nigeria’s state-owned energy company, the Nigerian National Petroleum Company Limited (NNPC Ltd), has taken a significant step toward reshaping its oil and gas portfolio, as it begins preparations to sell stakes in some of its upstream assets. The move, revealed in a recent report, signals a renewed push by the national oil company to attract fresh investment, unlock capital, and improve the performance of assets across the sector.

According to details contained in an invitation document circulated to potential investors, NNPC Ltd has opened the door for interested parties to submit bids for equity interests in selected oil and gas assets. While the document does not specify the exact assets involved or the percentage stakes on offer, it confirms that the company is actively seeking new partners as part of a broader portfolio optimisation strategy.

The development comes at a time when Nigeria, Africa’s largest crude oil producer, is under increasing pressure to stabilise output, boost revenues, and rebuild investor confidence in its oil and gas industry after years of underperformance.

The invitation document, which became public earlier this week, outlines the framework for the bidding process. Prospective investors have been asked to register their interest through an online portal by January 10. Following registration, a pre-screening exercise will be conducted to assess the eligibility of bidders.

Only firms that meet defined technical and financial criteria will be allowed to move to the next stage of the process. Successful applicants will then gain access to a secure virtual data room, where detailed information about the assets—including reserves data, operational status, and financial metrics—will be made available for review.

Subsequent stages of the transaction process are expected to include a detailed evaluation of submitted documents, negotiations with shortlisted bidders, and the securing of all necessary regulatory approvals before any final agreements are reached.

While NNPC Ltd has not disclosed how much it hopes to raise from the exercise, industry observers say the move could unlock significant capital if executed transparently and competitively.

NNPC Ltd holds interests in a wide range of oil and gas assets across Nigeria. Some of these assets are fully owned by the national oil company, while others are operated under joint venture or partnership arrangements with major international oil companies.

Among NNPC’s long-standing partners are global energy giants such as Shell, Chevron, Eni, and TotalEnergies. These collaborations span both onshore and offshore operations and have historically formed the backbone of Nigeria’s oil production.

Although it remains unclear whether the proposed stake sales will involve assets operated by international partners or fields where NNPC has majority or sole ownership, the invitation document suggests that the company is open to different transaction structures, including partial divestments and reductions in equity holdings.

The latest move is consistent with earlier indications from NNPC Ltd that it was considering selling at least 25 per cent of its equity in selected oil and gas fields. Those plans, which were still at a draft stage at the time, were aimed at streamlining the company’s portfolio and focusing resources on assets with the highest strategic and commercial value.

Portfolio optimisation has become a recurring theme among national and international oil companies alike, as the global energy landscape evolves and capital becomes more selective. By reducing exposure to underperforming or capital-intensive assets, companies can free up funds for reinvestment, debt reduction, or new growth opportunities.

For NNPC Ltd, which was transformed into a limited liability company under the Petroleum Industry Act (PIA), the shift reflects its mandate to operate as a commercially driven entity rather than a traditional state bureaucracy.

However, earlier discussions around potential asset sales have not been without controversy. Oil sector labour unions previously raised concerns over the implications of divestments, particularly with regard to job security and national strategic interests.

Union leaders warned that selling stakes in key assets could lead to workforce reductions, changes in employment conditions, or a loss of national control over critical energy resources. These concerns sparked debates within the industry and highlighted the delicate balance between commercial efficiency and social responsibility.

At the time of the latest invitation, NNPC Ltd had not issued a formal public statement addressing these concerns or clarifying whether safeguards would be put in place to protect jobs and local content commitments. Requests for comment on the new bidding process were also unanswered as of the filing of the report.

The backdrop to NNPC’s asset sale initiative is Nigeria’s ongoing struggle to maximise its oil production potential. Despite being Africa’s largest crude oil producer, the country has repeatedly fallen short of its output targets in recent years.

A combination of factors—including oil theft, pipeline vandalism, regulatory uncertainty, and ageing infrastructure—has weighed heavily on production levels. Many international oil companies have also scaled back or exited onshore operations, citing security concerns and rising costs.

As a result, Nigeria has increasingly relied on incremental production gains from marginal fields and divested assets, often taken over by indigenous operators. These local companies have played a growing role in sustaining output, particularly in areas vacated by international firms.

Industry analysts believe that the proposed stake sales by NNPC Ltd could help address some of these challenges, provided the process attracts investors with both the financial capacity and technical expertise needed to revitalise the assets.

Fresh capital injections could be used to fund field redevelopment, improve infrastructure, and deploy modern technology to enhance recovery rates. In addition, bringing in technically capable partners may improve operational efficiency and reduce downtime caused by equipment failures or security disruptions.

For Nigeria, attracting such investment is critical not only for boosting oil production but also for stabilising government revenues at a time when fiscal pressures remain high.

Despite the potential benefits, experts caution that the success of the asset sale programme will depend heavily on transparency and regulatory clarity. Investors will be watching closely to see how the bidding process is conducted and whether it adheres to international best practices.

Clear rules, predictable timelines, and timely regulatory approvals will be essential to building confidence among prospective bidders. Any perception of political interference or opaque decision-making could undermine the process and deter serious investors.

The Petroleum Industry Act was designed, in part, to address these concerns by providing a clearer legal and fiscal framework for the oil and gas sector. How effectively its provisions are implemented in transactions such as this will be a key test of Nigeria’s reform credentials.

Beyond immediate financial considerations, the proposed stake sales carry broader strategic implications for Nigeria’s energy future. By reshaping its asset base, NNPC Ltd has an opportunity to position itself as a leaner, more competitive national oil company capable of operating effectively in a changing global energy environment.

With energy transition pressures mounting worldwide, oil-producing countries are under increasing scrutiny to maximise the value of their hydrocarbon resources while they remain economically viable. For Nigeria, this means ensuring that its oil and gas assets are managed efficiently and attract investment that can sustain production in the medium term.

Ultimately, NNPC’s decision to invite bids for stakes in its oil and gas assets reflects a delicate balancing act. On one hand, the company needs capital, expertise, and efficiency to improve performance and remain competitive. On the other, it must navigate domestic sensitivities around asset ownership, employment, and national control.

If managed well, the divestment programme could mark a turning point for Nigeria’s oil and gas sector, helping to unlock value from underperforming assets and restore investor confidence. If mishandled, however, it could deepen existing mistrust and slow progress toward sector reform.

As the January 10 registration deadline approaches, attention will shift to the quality of interest generated by the bidding process and how NNPC Ltd responds to stakeholder concerns. The outcome will likely shape not only the future of the assets involved but also broader perceptions of Nigeria’s commitment to reforming its energy sector.