The Nigerian National Petroleum Company Limited (NNPC) and Chevron Nigeria Ltd (CNL) have announced the successful conversion of five Joint Venture (JV) assets from the Petroleum Profit Tax (PPT) to the Petroleum Industry Act (PIA) terms. This transition aligns with the PIA 2021, marking a significant shift towards a more modern and investor-friendly regulatory framework.
The newly converted assets, which were announced in a press statement released by the NNPC on Monday, are expected to enhance Nigeria’s oil production capacity, with a target set to achieve 165,000 barrels per day by December 2024. This ambitious goal underscores the commitment of both companies to significantly boost production and contribute to the growth of Nigeria’s oil sector.
Mr. Mele K. Kyari, Group Chief Executive Officer of NNPC Ltd, praised the successful conversion and the partnership with Chevron. He remarked, “The completion of this conversion is a testament to our dedication to modernising our operations and increasing our production capacity. Chevron has been a reliable partner throughout this process.”
Kyari further commended Chevron’s role, adding, “Chevron’s commitment and reliability have been instrumental in this transition. Their partnership has been invaluable in achieving this milestone.”
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) was also acknowledged for its role in facilitating the conversion. Kyari noted, “The support from the NUPRC has been crucial in implementing this transition smoothly, reflecting the collaborative effort needed for industry reforms.”
Mrs. Oritsemeyiwa A. Eyesan, Executive Vice President of NNPC Ltd, highlighted the strategic advantages of the PIA terms, stating, “The Petroleum Industry Act offers a more investor-friendly framework compared to the previous PPT terms. This transition is crucial for enhancing our industry’s attractiveness and operational efficiency.”
This development is expected to have a positive impact on Nigeria’s energy sector, with the partners aiming to increase domestic gas supply and enhance their presence in the global market.
Ozioma Samuel-Ugwuezi
Follow us on:
