Bids on Chevron's Nigeria Oil Blocks due Next Week - Sources

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 said.

Afren declined to comment and SAPETRO did not respond to a request for comment.

LOCAL BIDDERS

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.


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