NNPC Announces New Milestone after Dangote Begins Petrol Production

• The NNPCL and its joint venture partner, Chevron Nigeria Ltd., have completed the conversion of five joint venture assets
• The Chief Upstream Investment Officer of NNPC, states that the asset conversion is expected to significantly boost crude oil output
• He emphasised the importance of Chevron's operational approach in maintaining network stability and ensuring a steady supply of gas

Legit.ng journalist Zainab Iwayemi has over 3-year-experience covering the Economy, Technology, and Capital Market.

In accordance with the Petroleum Industry Act of 2021, the Nigerian National Petroleum Company Limited and Chevron Nigeria Ltd, its joint venture partner, have finished converting five joint venture assets.

The asset conversion is anticipated to greatly increase crude oil output, according to Bala Wunti, chief upstream investment officer of NNPC. By the end of 2024, the two companies hope to produce 165,000 barrels of oil per day.

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He underlined how crucial Chevron's operating strategy is to preserve network stability and guarantee a consistent supply of gas to the domestic market.

This change came when the more investor-friendly PIA terms replaced the Petroleum Profit Tax regime.

Olufemi Soneye, the Chief Corporate Communications Officer of NNPC, made a statement on behalf of the firm, stating that both partners signed the required paperwork on Monday during a ceremony.

He sid that the conversion is a significant step toward boosting domestic gas supply and enhancing Nigeria's market share internationally.

All current Oil Prospecting Licenses and OMLs will automatically convert into PPLs and PMLs upon expiration, per PIA requirements. Under the PIA conditions, companies may also choose to transition voluntarily.

NNPC’s group CEO, Mele Kyari, hailed Chevron for its long-term partnership.

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“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.

In addition, Kyari reassured Chevron of NNPC's dedication to advancing the collaboration with the goal of generating shared benefits and bolstering Nigeria's position in the domestic and international gas markets.

Michelle Pflueger, director of Deepwater and Production Sharing Contracts at Chevron, reaffirmed the company's long-standing commitment to the JV assets and emphasized the significance of the conversion for both parties.

The strategic advantages of the PIA terms were emphasized by NNPC Executive Vice President, Upstream, Mrs. Oritsemeyiwa Eyesan. She emphasized that the conversion is essential to the Act's successful implementation.

Otedola reacts as Dangote begins petrol production

Legit.ng reported that billionaire businessman Femi Otedola had congratulated Aliko Dangote on the actualisation of his $20bn refinery in Lagos.

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Otedola declared that Nigeria would no longer have to submit to foreign powers for its fuel needs since the Dangote Refinery has started producing petrol.

Otedola said with the 650,000 barrels per day facility fully producing aviation fuel, diesel, and petrol, Dangote has dealt a death blow to local cabals, who have grown rich by keeping Nigeria in a perpetual state of dependence.

Proofread by Kola Muhammed, journalist and copyeditor at Legit.ng

Source: Legit.ng