Olufemi Adeyemi
Bala Wunti, the Chief Upstream Investment Officer at NNPC
Ltd., indicated that this asset conversion is anticipated to significantly
enhance crude oil production, with both companies aiming for a target of
165,000 barrels of oil per day by the end of 2024.
He highlighted the critical role of Chevron’s operational
strategies in maintaining network stability and ensuring a reliable gas supply
to the domestic market.
This transition marks a shift from the Petroleum Profit Tax
regime to the more favorable terms outlined in the PIA.
A statement from Olufemi Soneye, Chief Corporate
Communications Officer at NNPC Ltd., confirmed that the necessary documents
were signed by both partners during a ceremony held at NNPC Towers on Monday.
The agreement resulted in the conversion of five Oil Mining
Leases into four Petroleum Prospecting Licenses and twenty-six Petroleum Mining
Leases.
This conversion is a significant step towards increasing
domestic gas supply and enhancing Nigeria’s presence in the global market.
Under the provisions of the PIA, all existing Oil
Prospecting Licenses and OMLs will automatically transition into PPLs and PMLs
upon expiration, although companies may also choose to convert voluntarily
under the PIA terms.
NNPC Ltd. Group CEO Mele Kyari commended Chevron for its
enduring partnership, stating, “Chevron has consistently been a partner of
choice, never considering a complete divestment from shallow water oil
production, and we take pride in this relationship.”
Kyari further assured Chevron of NNPC’s dedication to
nurturing the partnership, with the goal of creating mutual value and
reinforcing Nigeria’s position in both domestic and export gas markets.