Abuja, Jan. 24, 2024 – Chevron Nigeria Ltd (CNL) has secured $1.4 billion financing for drilling projects across the NNPCL/CNL JV infill drilling programme scheduled for 2022 and 2026.
The projects involve the drilling of 37 wells in the shallow offshore and onshore Escravos region, along with the construction of associated facilities.
Mr Clay Neff, the Leader of a Chevron Delegation, disclosed this to President Bola Tinubu during a meeting at the State House in Abuja on Tuesday.
He said the company would continue to adhere to the highest standards, while also fulfilling its investment commitments in Nigeria.
He said Chevron’s was contributing about 25 per cent to the domestic gas supply through a joint venture with the NNPCL.
Neff said Chevron was committed to scaling up its investments in the country, as shown by its recent efforts in a new phase of development.
He said the developments include: “The conversion, under the Petroleum Industry Act, of all 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)”
“Entry into OPL 215 block to boost deep-water development opportunities; signing of the 20-year renewal of three deepwater leases; commencement of seismic data acquisition in several deepwater leases;”
“Commencement of life extension work on the Agbami project, and, in partnership with NNPCL, securing of $1.4 billion financing to fund the NNPCL/CNL JV infill drilling programme between 2022 to 2026, which includes the drilling of 37 wells in the shallow offshore and onshore Escravos area and associated facilities.”
Neff said Chevron’s average annual tax and royalty remittances to the federal government in the last three years totalled $3.4 billion.
He explained the circumstanced leading to the company’s diversification and sale of its onshore assets.
In his response, Tinubu expressed appreciation to Chevron for expanding its investments in both shallow and deep-water operations in Nigeria.
He specifically identified the ongoing $1.4 billion drilling project in collaboration with the Nigerian National Petroleum Company Limited (NNPCL).
The President assured the company of his administration’s commitment to implementing necessary interventions in the oil and gas industry to align with the provisions of the Petroleum Industry Act (PIA).
“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,” he said. (GBN)
