Abuja, Nigeria – In a significant milestone, NNPC Ltd and its Joint Venture (JV) partner, Chevron Nigeria Ltd (CNL), have successfully converted five JV assets into the new Petroleum Industry Act (PIA) terms.
A statement by the NNPC said this move aligns with the PIA 2021 provisions, which aim to increase domestic gas supply and expand global market presence.
The conversion ceremony, held at the NNPC Towers, marked the transition of five OMLs into four PPLs and 26 PMLs, under the new PIA regime. This development is expected to boost crude oil production, with the partners targeting 165,000 barrels of oil per day (bopd) by December 2024.
NNPC Ltd’s Group CEO, Mele Kyari, praised CNL as a reliable partner, highlighting their long-standing commitment to the assets. He assured CNL of NNPC Ltd’s continued partnership to create more value and expand Nigeria’s footprint in the domestic and export gas markets.
The conversion is seen as a strategic move towards the successful implementation of the PIA, which offers more investor-friendly terms compared to the previous PPT regime. The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) played a crucial role in facilitating the conversion.
CNL’s Director, Deepwater and Production Sharing Contract (PSC), Michelle Pflueger, reaffirmed CNL’s commitment to the assets, while NNPC Ltd’s Executive Vice President, Upstream, Oritsemeyiwa Eyesan, highlighted the advantages of the PIA terms.
The partners are optimistic about achieving their production target, which will significantly contribute to Nigeria’s oil output. The conversion is expected to enhance the JV’s operational efficiency and facilitate gas supply to the domestic market.
