The Nigerian National Petroleum Company Ltd (NNPC) and Chevron Nigeria Ltd, have perfected the conversion of five joint venture assets in compliance with the Petroleum Industry Act of 2021.
According to the Chief Upstream Investment Officer at NNPC, Mr Bala Wunti, he said the asset conversion is expected to significantly boost crude oil production, with the two companies targeting 165,000 barrels of oil per day by the end of 2024.
He went on about the importance of Chevron’s operational approach in maintaining network stability and ensuring a steady supply of gas to the domestic market.
This transition follows the shift from the Petroleum Profit Tax regime to the more investor-friendly PIA terms.
In a statement released by NNPC’s Chief Corporate Communications Officer, Olufemi Soneye, the company said both partners signed the necessary documents during a ceremony on Monday with the agreement to convert five Oil Mining Leases into four Petroleum Prospecting Licences and 26 Petroleum Mining Leases.
This conversion represents a key milestone in increasing domestic gas supply and expanding Nigeria’s footprint in the global market.
NNPC’s Group CEO, Mele Kyari, praised Chevron for its long-term partnership stating that 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”.
Kyari then reassured Chevron of NNPC’s commitment to fostering the partnership, aiming to create mutual value and strengthen Nigeria’s role in both domestic and export gas markets.
Mrs. Michelle Pflueger, Chevron’s Director of Deepwater and Production Sharing Contracts, affirmed the importance of the conversion for both companies and reiterated Chevron’s long-standing commitment to the JV assets.
