President Bola Tinubu reiterated his administration’s unwavering commitment to providing vital interventions in the oil and gas sector, aligning with the groundbreaking provisions set forth in the Petroleum Industry Act (PIA). In a meeting with a delegation from Chevron Corporation, headed by President of Chevron International Exploration and Production, Mr. Clay Neff, President Tinubu underscored the transformative impact of the PIA on the industry and the collaborative efforts needed to capitalize on its potential benefits.
Addressing the delegation on Tuesday in Abuja, Special Adviser to the President on Media and Publicity, Ajuri Ngelale, issued a statement titled, “President Tinubu: PIA Interventions to Propel Oil and Gas Sector Advancements.” The President emphasized viewing the PIA as a legacy law, assuring swift interventions and resolution of operational challenges encountered by industry players. President Tinubu outlined Nigeria’s commitment to fortifying its long-standing partnership with Chevron, acknowledging the evolving dynamics in the oil and gas industry.
$1.4bn Project aligns with PIA, boosting Nigeria’s oil sector growth.
He welcomed Chevron’s dedication to expanding investments in both shallow and deep-water operations in Nigeria, spotlighting the ongoing $1.4 billion drilling project conducted in collaboration with the Nigerian National Petroleum Company Limited (NNPCL). The President also lauded Chevron’s efforts towards reducing its carbon footprint, aligning with global Sustainability objectives. The PIA, a landmark Legislation signed into law to revamp the Nigerian oil and gas sector, introduces critical reforms aimed at attracting investment, ensuring transparency, and fostering sustainable development.
One of its primary objectives is to create a conducive environment for businesses, stimulate economic growth, and optimize the nation’s oil and gas resources. During the meeting, Neff pledged Chevron’s commitment to operating in full adherence to the highest standards while meeting its Investment commitments in Nigeria. He underscored Chevron’s contributions to domestic gas supply, highlighting the delivery of 25% of gas through a joint venture with NNPC Limited. Delving into the specifics of Chevron’s recent initiatives aligned with the PIA, Neff elucidated the company’s transformative projects. This includes the conversion, under the PIA, of NNPC/Chevron Nigeria Limited Joint Venture Oil Mining Leases and Agbami OML 127 to Petroleum Mining Leases and Petroleum Prospecting Licences.
Bold investments, deepwater exploration, and 60-year partnership.
Additionally, Chevron is exploring the OPL 215 block for deep-water development opportunities and has signed a 20-year renewal of three deepwater leases. Neff also revealed that Chevron has commenced seismic data acquisition in several deepwater leases, initiated life extension work on the Agbami project, and, in partnership with NNPC, secured $1.4 billion in financing for the NNPC/CNL JV infill drilling program spanning from 2022 to 2026. This ambitious program encompasses the drilling of 37 wells in the shallow offshore and onshore Escravos area, along with associated facilities. Highlighting Chevron’s significant contributions to the Nigerian economy, Neff disclosed that the company’s average annual Tax and royalty remittances over the past three years reached an impressive $3.4 billion.
Chevron’s president commended President Tinubu’s bold steps since assuming office and expressed Chevron’s enthusiasm for the enduring partnership that spans over six decades. “The bold steps you have taken since you assumed office are quite impressive. We are encouraged by our partnership of over 60 years, and we look forward, God willing, to continue that partnership for many decades to come. We are also looking at other opportunities as well while operating with the best environmental practices. We will continue to grow our traditional oil and gas business because we know the countries where we operate are in need of those products, and the world needs those products,” Neff stated.
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As Nigeria’s president concluded the meeting by reiterating Nigeria’s pride in the enduring 60-year partnership with Chevron, he expressed confidence that the collaboration would generate mutually beneficial value for both the company’s shareholders and the broader Economic Development of the nation. As the PIA takes center stage in reshaping the Nigerian oil and gas landscape, this renewed commitment from both the government and Chevron positions the sector for sustained growth and positive transformation. The meeting between President Tinubu and the Chevron delegation underscores the strategic importance of the Oil and Gas Industry in Nigeria and the government’s commitment to fostering growth and sustainability under the newly enacted Petroleum Industry Act.