NNPC Ltd and its partner, Chevron Nigeria Ltd (CNL), have completed the transition of five joint venture assets to the new terms outlined in the Petroleum Industry Act (PIA) 2021. This move aligns with the PIA’s provisions for converting assets from the Petroleum Profit Tax (PPT) regime to the new PIA terms.
Key Conversion Details:
All existing Oil Prospecting Licences (OPLs) and Oil Mining Leases (OMLs) will automatically convert to Petroleum Prospecting Licences (PPLs) and Petroleum Mining Leases (PMLs) when they expire.
Holders of OPLs and OMLs can opt for voluntary conversion under the new PIA terms, which are considered more attractive to investors.
The two partners have signed documents converting five OMLs into four PPLs and 26 PMLs, marking a significant step towards boosting domestic gas supply and expanding global market presence.
Leaders’ Comments:
• NNPC Ltd’s Group CEO, Mr. Mele Kyari, praised CNL as a reliable partner, noting their commitment to shallow water oil production.
• Kyari assured CNL of NNPC Ltd’s continued partnership to create more value and expand Nigeria’s gas market presence.
• Mrs. Michelle Pflueger, CNL’s Director, Deepwater and PSC, emphasized the conversion’s significance and CNL’s long-standing commitment to the assets.
• NNPC Ltd’s Executive Vice President, Upstream, Mrs. Oritsemeyiwa Eyesan, highlighted the advantages of the PIA terms and the strategic move towards successful PIA implementation.
• Mr. Bala Wunti, NNPC Ltd’s Chief Upstream Investment Officer, noted the expected significant boost in crude oil production, targeting 165,000 barrels per day by year-end 2024.
Partnership and Regulation:
NNPC Ltd and CNL aim to sustain their partnership and expand Nigeria’s gas market presence.
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) played an exemplary role in facilitating the conversion.
