Nigeria Plans to Boost Interventions in Oil and Gas Sector, Says President Tinubu

Deji Elumoye
In Abuja

President Bola Tinubu has made a commitment to continue offering vital support to the oil and gas industry in accordance with the provisions of the Petroleum Industry Act (PIA). This pledge was reiterated during the visit of the Chevron Corporation delegation, led by President of Chevron International Exploration and Production, Mr Clay Neff, at the State House in Abuja. President Tinubu assured that Nigeria will strengthen its longstanding partnership with the multinational company in line with the changing dynamics in the oil and gas sector.

The President expressed satisfaction with Chevron’s commitment to expanding its investments in shallow and deep-water operations in Nigeria, highlighting the ongoing $1.4 billion drilling project with the Nigerian National Petroleum Company Limited (NNPCL). He also commended Chevron for its efforts to reduce its carbon footprint in the country.

President Tinubu stated, “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.”

In response, Neff pledged that the company would uphold the highest standards while fulfilling its investment commitments in Nigeria. He also highlighted Chevron’s contributions to domestic gas supply, with 25% of gas being delivered through a joint venture with NNPC Limited. Furthermore, Neff shared the company’s increased investments in the country, including initiatives such as the conversion of joint venture Oil Mining Leases (OMLs) and the Agbami OML 127 to Petroleum Mining Leases and Petroleum Prospecting Licences (PPLs) under the Petroleum Industry Act. He also mentioned Chevron’s entry into the OPL 215 block to enhance deep-water development opportunities, as well as the signing of a 20-year renewal of three deepwater leases. Additionally, he spoke about the commencement of seismic data acquisition in several deepwater leases, life extension work on the Agbami project, and the securing of $1.4 billion financing for the NNPCL/CNL JV infill drilling programme.

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

In conclusion, Neff expressed confidence in the partnership with Nigeria and highlighted Chevron’s commitment to operating with the best environmental practices, as well as continuing to grow the traditional oil and gas business to meet global needs. President Tinubu and Neff both emphasized the mutual benefits of their partnership and expressed their hopes for its continuation in the future, marking the ongoing collaboration between Nigeria and Chevron as a positive and successful endeavor.

Overall, the meeting between President Tinubu and the Chevron delegation signifies a continued commitment to fostering a strong and mutually beneficial partnership in the oil and gas sector, boding well for both the economy and the energy industry in Nigeria.