The Nigerian National Petroleum Company Limited and its joint venture partner, Chevron Nigeria Ltd, have completed the conversion of five joint venture assets in compliance with the Petroleum Industry Act of 2021.
The Chief Upstream Investment Officer at NNPC, Mr Bala Wunti, 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 emphasised 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.
The agreement converted five Oil Mining Leases into four Petroleum Prospecting Licenses 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.
According to PIA provisions, all existing Oil Prospecting Licenses and OMLs will automatically transition into PPLs and PMLs upon expiration. However, companies also have the option to voluntarily convert under the PIA terms.
NNPC’s Group CEO, Mele Kyari, praised Chevron for its long-term partnership.
“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,” he said.
Kyari further 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.
Chevron’s Director of Deepwater and Production Sharing Contracts, Mrs Michelle Pflueger, affirmed the importance of the conversion for both companies and reiterated Chevron’s long-standing commitment to the JV assets.
NNPC Executive Vice President, Upstream, Mrs Oritsemeyiwa Eyesan, highlighted the strategic advantages of the PIA terms, emphasizing that the conversion is crucial to the successful implementation of the Act.
The statement also commended the Nigerian Upstream Petroleum Regulatory Commission for its pivotal role in facilitating the conversion process.
