Celebrating Chevron’s $1.4 Billion Drilling Project in Nigeria
The President of Nigeria, Bola Ahmed Tinubu, recently conveyed his gratitude for Chevron Corporation’s dedication to expanding its investments in both shallow and deep water operations in Nigeria. Specifically, President Tinubu highlighted the ongoing $1.4 billion drilling project with the Nigerian National Petroleum Company Limited (NNPCL).
During a meeting with a delegation from Chevron Corporation, led by Mr. Clay Neff, President of Chevron International Exploration and Production, President Tinubu assured the multinational company of his administration’s commitment to providing necessary support in the oil and gas industry in accordance with the regulations of the Petroleum Industry Act (PIA).
President Tinubu further pledged Nigeria’s readiness to strengthen its long-standing partnership with Chevron Corporation, taking into account the changing dynamics in the oil and gas industry. The President also commended Chevron for its efforts in reducing its carbon footprint in the country.
In response, Mr. Neff reiterated the company’s commitment to operating in full compliance with the highest standards while meeting its investment commitments in Nigeria. He also highlighted Chevron’s contributions to domestic gas supply, emphasizing the delivery of 25% gas through a joint venture with NNPC Limited.
Furthermore, Mr. Neff informed President Tinubu of Chevron’s recent investments in Nigeria, which include the conversion of 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) under the Petroleum Industry Act. Additionally, Chevron has expanded its deep-water development opportunities in OPL 215 block and secured financing to fund the NNPCL/CNL JV infill drilling programme from 2022 to 2026.
President Tinubu expressed Nigeria’s pride in the 60-year partnership with Chevron and emphasized the country’s commitment to strengthening this partnership for mutual benefit. Mr. Neff also acknowledged the progress made under President Tinubu’s leadership, expressing encouragement for the continuation of the long-standing partnership between Chevron and Nigeria.
Chevron’s average annual tax and royalty remittances over the past three years have reached $3.4 billion, demonstrating the company’s significant contribution to the Nigerian economy. Mr. Neff also reassured President Tinubu of Chevron’s commitment to environmental best practices and the growth of its traditional oil and gas business to meet global demand.
The meeting between President Tinubu and the Chevron delegation signifies the country’s dedication to fostering mutually-beneficial partnerships with multinational companies in the oil and gas industry. The commitment of Chevron to expanding its investments in Nigeria demonstrates the country’s attractiveness to foreign investors and its potential for economic growth in the energy sector.
As Nigeria continues to enhance its position as a key player in the global energy market, the collaboration between the government and multinational companies such as Chevron will play a crucial role in driving sustainable development and economic prosperity for the nation. President Tinubu’s positive reception of Chevron’s investment plans reflects the country’s concerted efforts to create a conducive environment for foreign investments and to bolster the oil and gas industry.
The mutual commitment and collaboration demonstrated during the meeting between President Tinubu and the Chevron delegation pave the way for continued prosperity and growth in Nigeria’s energy sector.
