Reuters: NNPC Set to Sell Selected Oil, Gas Assets, Invites Bids

•National oil company in talks to secure $2bn for pipeline upgrade

•Presidency: Despite write-off of $1.42bn, N5.57tn debt, $42bn remains in dispute

•Says Escravos–Lagos pipeline restored to full operations

Emmanuel Addeh in Abuja and Peter Uzoho in Lagos

The Nigerian National Petroleum Company Limited (NNPC Ltd) is planning to sell stakes in some of its oil and gas assets and has already called for bids, a report by Reuters said yesterday.

Quoting an invitation document, it stated that interested bidders must register online by January 10, after which pre-screening will follow and qualified firms will gain access to a secure virtual data room.

But two of Nigeria’s influential oil sector unions had in September this year strongly opposed the government’s reported plans to divest significant stakes in joint venture assets managed by the NNPC.

Specifically, the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) and the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG) had warned that such moves could destabilise the economy, weaken the oil industry, and jeopardise the welfare of workers.

Both organisations rejected the proposal to cut government stakes in Joint Venture (JV) assets by as much as 30–35 per cent. Currently, the federal government holds between 55 and 60 per cent of such assets through the NNPC.

According to the invitation document, prequalification will be based on technical and financial capacity, followed by document evaluation, negotiations and regulatory approvals.

Nigeria has struggled to boost crude output and attract investment and is targeting incremental growth through production from marginal onshore fields vacated by international firms.

Also, the NNPC is discussing $2 billion in financing from Nexus Alliance, a company that supports pipeline infrastructure, according to people with knowledge of the matter, Bloomberg reported yesterday.

Nigeria’s over 5,000 kilometres oil and gas pipeline network, once the backbone of the country’s energy export and domestic supply system, has long suffered from extensive inoperability and disruptions caused by repeated vandalism, theft, sabotage and infrastructure decay.

A number of major pipelines that transport crude from producing fields to export terminals, and natural gas to power plants and LNG facilities, are frequently out of service or operating below capacity.

Despite recent improvements in security, underinvestment, ageing infrastructure and the persistent threat of vandalism mean that many pipelines remain vulnerable and intermittently inoperable, with direct consequences for Nigeria’s oil output, export earnings and domestic energy supply.

However, the report noted that the state-owned oil producer expects to receive the funds early next year and will use the money to repair and upgrade pipelines damaged by theft and vandalism while reducing leaks.

The NNPC has sought fresh capital in recent months as part of a broader refinancing effort, including discussions with lenders based in Saudi Arabia, according to the people.

The company, which aims to lift oil output to at least 1.8 million barrels a day and increase gas production, targets to attract investment of $30 billion by 2027, one of the people told Bloomberg. It expects to get halfway to that goal in 2026.

NNPC has a longstanding ambition to sell shares via an initial public offering and is trying to improve transparency and accountability to make progress towards that goal.

Checks by THISDAY showed that Nexus Alliance Limited is a Nigerian-headquartered company that specialises in training, consulting, and asset performance management solutions for energy, industrial, and infrastructure sectors, particularly oil & gas, energy, petrochemicals and related industries.

Meanwhile, the NNPC has announced the successful restoration of the Escravos–Lagos Pipeline System (ELPS) in Warri, Delta State.

Following the unexpected explosion on December 10, 2025, the company said it immediately activated its emergency response, deployed coordinated containment measures, and worked tirelessly with multidisciplinary teams to ensure the damaged section was repaired, pressure-tested, and safely recommissioned.

“Today, the pipeline is fully operational, reaffirming our resilience and commitment to energy security. This achievement was made possible through the unwavering support of our host communities, the guidance of regulators, the vigilance of security agencies, and the dedication of our partners and staff.

“Together, we turned a challenging moment into a success story, restoring operations in record time while upholding the highest standards of safety and environmental stewardship. As we move forward, NNPC Limited remains steadfast in its pledge to protect our environment, safeguard our communities, and maintain the integrity and reliability of our assets,” the statement signed by the NNPC spokesman, Andy Odeh, stated.

Besides, the presidency on its X handle yesterday said that despite President Bola Tinubu’s  write-off of  NNPC’s $1.42 billion and N5.57 trillion, the $42.37 billion (which the NNPC has denied owing) remains contentious.

It confirmed that Tinubu has approved the cancellation of a substantial portion of NNPC  outstanding debts owed to the Federation Account, effectively wiping out approximately $1.42 billion in legacy obligations, following recommendations from the Stakeholder Alignment Committee on reconciling indebtedness between NNPC and the Federation.

The debt cancellation, it said, covered legacy obligations up to December 31, 2024, including: Production Sharing Contracts (PSCs), Domestic Supply Obligations, repayment agreements, modified carry arrangements and Joint Venture / PSC royalty receivables.

It noted that corresponding accounting adjustments have already been made in the Federation Account.

“New obligations for January-October 2025 remain outstanding and are actively being tracked and recovered. A separate, long-running dispute over an alleged under-remittance of $42.37 billion (2011-2017) remains unresolved, with NNPC rejecting the claims and insisting all revenues were properly accounted for,” the material posted on X stated.