Tinubu says Oil and Gas sector ‘ll safeguard, enhance value of investments

Estimated reading time: 3 minutes

President Bola Tinubu has reiterated his administration’s dedication to providing essential interventions in the oil and gas industry, aligning with the provisions of the Petroleum Industry Act (PIA).

Tinubu made this statement during a meeting with a Chevron Corporation delegation, headed by President of Chevron International Exploration and Production, Mr. Clay Neff, in Abuja on Tuesday.

In a press release, Tinubu’s Special Adviser on Media and Publicity, Ajuri Ngelale, conveyed that Tinubu emphasised Nigeria’s commitment to fortifying its longstanding partnership with Chevron, adapting to the dynamic landscape of the oil and gas sector.

Acknowledging Chevron’s commitment, Tinubu welcomed their initiative to expand investments in both shallow and deep-water operations in Nigeria, highlighting the ongoing $1.4 billion drilling project with the Nigerian National Petroleum Company Limited (NNPCL).

ALSO READ: We’ll continue fighting corruption, Tinubu tells CAN leadership 

He praised Chevron for its efforts in reducing carbon footprint within the country.

”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,” President Tinubu said.  

Speaking, Mr Neff pledged that the company would continue to operate in full adherence to the highest standards, even as it meets its investment commitments in Nigeria.

ALSO READ: Tinubu calls for review of global tax system

He highlighted the company’s contributions to domestic gas supply, noting the delivery of 25% gas through a joint venture with NNPC Limited. 

He also said Chevron was scaling up its investments in the country with its recent efforts in a new phase of development to 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 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”.

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

”The bold steps you have taken since you assumed office are quite impressive. We are encouraged by our partnership of over 60 years, and we look forward, God willing, to continue that partnership for many decades to come. 

ALSO READ: Tinubu commiserates with Oyo Govt, victims over Ibadan explosion

”We are also looking at other opportunities as well, while operating with the best environmental practices. We will continue to grow our traditional oil and gas business because we know the countries where we operate are in need of those products, and the world needs those products.”