NNPC Limited announced on Monday that it has entered into a major agreement with its Joint Venture partner, Chevron Nigeria Ltd (CNL), to convert five JV assets under the Petroleum Industry Act (PIA) terms. This move is expected to boost crude oil production significantly, with a target of achieving 165,000 barrels per day (bpd) by the end of 2024.
Chief Corporate Communications Officer, Mr. Olufemi Soneye, explained that the agreement aligns with the PIA 2021, which transitions assets from the Petroleum Profit Tax (PPT) regime to PIA terms. Under the new regulations, Oil Prospecting Licenses (OPLs) and Oil Mining Leases (OMLs) will automatically convert to Petroleum Prospecting Licenses (PPLs) and Petroleum Mining Leases (PMLs) upon expiration, with an option for voluntary conversion.
During the signing ceremony held at the NNPC Towers, Group CEO of NNPC Ltd, Mr. Mele Kyari, praised Chevron as a reliable partner, emphasizing the JV’s role in expanding domestic gas supply and strengthening Nigeria’s position in the global energy market.
NNPC’s Executive Vice President, Upstream, Mrs. Oritsemeyiwa Eyesan, highlighted the advantages of PIA terms, positioning the deal as a strategic move for both partners. The conversion is expected to play a significant role in the companies’ efforts to meet their oil production targets and expand their reach in both domestic and international gas markets.
News Editor