Chevron Nigeria (CNL) and Nigerian National Petroleum Corporation have concluded the conversion of five of its joint venture (JV) assets into the Petroleum Industry Act (PIA) 2021 terms to leverage its investor-friendly approach over the erstwhile petroleum profit tax
The oil major opted voluntary conversion that is applicable for oil prospecting licenses (OPL) and oil mining leases (OML) holders under the old regime.
As for existing OPLs and OMLs nearing expiration, the new PIA regime automatically recognises them as petroleum prospecting licenses (PPLs) and petroleum mining leases (PMLs) upon their expiration.
The conversion of five OMLs into four PPLs and 26 PMLs as per the new PIA terms not only benefits Chevron but also boosts Nigeria's domestic gas market while expanding its global presence.
Long-term partner
“Over the years, Chevron has been a partner of choice that has not contemplated completely divesting/exiting (oil production in) the shallow water and we are proud of them,” said Mele Kyari, group CEO of NNPC, defining Chevron Nigeria as a reliable partner of the corporation.
The partners are aiming to reach a production target of 165,000 barrels of oil per day (bopd) by the end of the year, revealed Bala Wunti, chief upstream investment officer, NNPC. He acknowledged Chevron Nigeria's commitment to maintaining network stability and facilitating gas supply especially to the domestic market.
Chevron Nigeria, NNPC convert five assets into PIA terms
Mele Kyari and Michelle Pflueger, director of deepwater and PSC, CNL, sign documents. (Image source: NNPC Ltd)
