FG plans $2.3bn in JV oil asset equity restructuring – DMO

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Nigeria’s Debt Management Office (DMO) said on Thursday that the country plans to raise N710 billion ($2.26 bln) via restructuring its equity in joint venture oil assets and increasing private sector participation, Reuters reports.

Oil companies including Royal Dutch Shell, Chevron and ExxonMobil, operate in Nigeria through joint ventures with NNPC. The government has considered selling stakes in these joint ventures for more than a decade. The current plan was captured in the 2018 budget proposals and is aimed at providing revenue to the government to be used to create new assets, the DMO said in a statement, responding to Moody’s downgrade of Nigeria’s bonds.

In March, the government said it expected to earn N35 billion from the sale of some assets, including oil joint ventures, and reducing stakes in other oil and non-oil assets. Ratings agency Moody’s on Tuesday cut Nigeria’s long-term foreign-currency bond to B1 from Ba3 and kept its outlook stable, saying Nigerian efforts to broaden non-oil revenue had been unsuccessful. The local-currency rating was unchanged at Ba1.