In alignment with the provisions of Nigeria’s Petroleum Industry Act (PIA) 2021, state-owned NNPC and its Joint Venture partner, Chevron Nigeria Ltd (CNL), have successfully converted five Joint Venture assets into PIA terms. This conversion marks a significant milestone in enhancing domestic gas supply and expanding Nigeria’s presence in the global market.
Thank you for reading this post, don't forget to subscribe!During a ceremony at the NNPC Towers in Abuja, key figures such as Mele Kyari, GCEO of NNPC Ltd; Michelle Pflueger, Director of Deepwater and Production Sharing Contracts at Chevron; and Queen Nwaha Torkwasi from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) showcased the signed documents affirming the conversion.
Under the new PIA regime, all existing Oil Prospecting Licenses (OPLs) and Oil Mining Leases (OMLs) will transition automatically to Petroleum Prospecting Licenses (PPLs) and Petroleum Mining Leases (PMLs) upon expiration. However, holders of OPLs and OMLs have the option for voluntary conversion under the Petroleum Profit Tax (PPT) regime, with the PIA terms regarded as more favorable for investors.
The conversion of five OMLs into four PPLs and twenty-six PMLs signifies a substantial step towards increasing crude oil production. NNPC’s Chief Upstream Investment Officer, Bala Wunti, emphasized that this transition is expected to significantly enhance production, with a target of reaching 165,000 barrels per day (bpd) by the end of 2024.
Mele Kyari acknowledged Chevron’s longstanding commitment to Nigeria’s oil production, especially in shallow water operations, and expressed confidence in the partnership’s potential to create further value and expand Nigeria’s gas market. Meanwhile, Michelle Pflueger reaffirmed Chevron’s dedication to its Nigerian assets, highlighting the significance of this conversion for both companies.
NNPC Ltd’s Executive Vice President for Upstream, Mrs. Oritsemeyiwa Eyesan, noted the strategic advantages of the PIA terms compared to the previous PPT terms, viewing this conversion as a key step in the effective implementation of the PIA.
