Report summaryOML 88 is a shallow water block located in the central Niger Delta. Seven fields have been discovered on the block but only Pennington and Middleton have been developed. Both have been producing since the 1970s and are now depleted. Although there is significant gas reserves on OML 88, there are no firm plans for monetisation, so they are classed as non-commercial. The OML 88 licence was renewed for a period of 20 years in January 2015 after it expired in 2008. The remaining value of the asset is negative as the oil reserves are depleted. The partners could realise additional value if the significant gas reserves are developed in future. A lack of upstream funding and gas monetisation options have been a major barrier to further development on the block. Because of the licence extension, the block may be a divestment candidate for Chevron which would be of interest to gas-focused investors.
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