NIGERIA: Chevron Delegation Meets Tinubu, Reiterates Plans To Ramp Up Investments In Post-PIA Landscape

American multinational energy corporation, Chevron, has reiterated its plans to ramp up investments in Nigeria and explore new opportunities under the country’s landmark Petroleum Industry Act (PIA).

The commitment came during a meeting between President Bola Tinubu and the Chevron delegation led by President of Chevron International Exploration and Production, Clay Neff, on Tuesday.

The corporation expressed its readiness to adapt to the post-PIA landscape by embracing new regulations and capitalizing on emerging opportunities.

Neff cited Chevron’s ongoing $1.4 billion drilling project with the Nigerian National Petroleum Company Limited (NNPCL) and announced a slew of initiatives.

President Tinubu welcomed the plans, praising Chevron’s 60-year partnership and pledging “quick interventions and turnaround” on any operational issues.

The PIA, passed in 2021, aims to reform and restructure Nigeria’s oil and gas sector. Tinubu encouraged Chevron to see the law as a “legacy act” that would enable quicker interventions and operations.

”You must see the PIA as a legacy law. We assure you of quick interventions and turnaround on any issue you may have in your operations in our country.

”Nigeria is proud of the 60-year partnership with Chevron, and we believe this partnership will be strengthened to add mutually-beneficial value for the benefit of your shareholders as well as the living standards and economic opportunities of our population,” President Tinubu said.

On its part, Chevron outlined plans to adhere to the highest industry standards while delivering on investment commitments.

The company noted that it was scaling up its investments in the country with its recent efforts in a new phase of development to include: “the conversion, under the Petroleum Industry Act, of all the NNPCL/Chevron Nigeria Limited Joint Venture (JV) Oil Mining Leases (OMLs) and Agbami OML 127 to Petroleum Mining Leases and Petroleum Prospecting Licences (PPLs); entry into OPL 215 block to boost deep-water development opportunities; signing of 20-year renewal of three deepwater leases; commencement of seismic data acquisition in several deepwater leases; commencement of life extension work on the Agbami project, and, in partnership with NNPCL, securing of $1.4 billion financing to fund the NNPCL/CNL JV infill drilling programme between 2022 to 2026, which includes the drilling of 37 wells in the shallow offshore and onshore Escravos area and associated facilities”.

Neff noted that Chevron’s average annual tax and royalty remittances over the past three years had reached $3.4 billion.

”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,” he said.