By Ayomide Otitoju
The Nigerian National Petroleum Company Limited (NNPC) and Chevron Nigeria Ltd. have successfully completed the conversion of five joint venture assets in alignment with the Petroleum Industry Act (PIA) of 2021. The milestone is expected to significantly boost crude oil production, with a target of 165,000 barrels per day by the end of 2024.
NNPC’s Chief Upstream Investment Officer, Mr. Bala Wunti, highlighted the operational efficiency brought by Chevron, ensuring stability in gas supply to the domestic market. The asset conversion marks a shift from the Petroleum Profit Tax regime to more investor-friendly terms under the PIA.
In a statement released by NNPC’s Chief Corporate Communications Officer, Olufemi Soneye, it was confirmed that both companies signed the necessary documents during a ceremony at NNPC Towers on Monday. The agreement transformed five Oil Mining Leases into four Petroleum Prospecting Licenses and 26 Petroleum Mining Leases, signaling a new chapter in Nigeria’s oil and gas industry.
NNPC Group CEO, Mele Kyari, commended Chevron for its unwavering commitment to Nigeria’s energy sector, particularly for not divesting from shallow water operations. He reaffirmed NNPC’s commitment to maintaining the partnership to create mutual value and strengthen Nigeria’s presence in both domestic and international gas markets.
Chevron’s Director of Deepwater and Production Sharing Contracts, Mrs. Michelle Pflueger, emphasized the importance of the asset conversion, reiterating Chevron’s long-standing commitment to its joint venture assets in Nigeria.
NNPC Executive Vice President, Upstream, Mrs. Oritsemeyiwa Eyesan, underscored the strategic benefits of the PIA terms, calling the conversion a critical step in the Act’s implementation.
The Nigerian Upstream Petroleum Regulatory Commission was also lauded for its key role in facilitating the conversion process, which is expected to enhance domestic gas supply and elevate Nigeria’s standing in the global energy market.
