The Nigerian Nationwide Petroleum Firm Restricted (NNPC Ltd.) and its Joint Enterprise, JV, companion, Chevron Nigeria Ltd., CNL, have concluded the conversion of 5 of its JV belongings into the Petroleum Business Act, PIA, phrases.
The NNPC Ltd. stated the event was according to the PIA 2021 provisions of transiting belongings from the Petroleum Revenue Tax (PPT) into PIA phrases.
Group CEO, NNPC Ltd., Mele Kyari, throughout the event of signing of paperwork on Monday in Abuja described CNL as one of the vital dependable companions for the NNPC Ltd.
Mr Kyari, in a press release by Olufemi Soneye, Chief Company Communications Officer, NNPC Ltd. stated over time, Chevron had been a companion of selection that had not contemplated utterly divesting/exiting (oil manufacturing in) the shallow water.
Beneath the brand new PIA regime, all current Oil Prospecting Licenses, OPLs, and Oil Mining Leases, OMLs, can be robotically transformed to Petroleum Prospecting Licenses, PPLs, and Petroleum Mining Leases, PMLs, upon their expiration.
Nonetheless, an possibility of voluntary conversion is supplied for holders of OPLs and OMLs (Operator, Licensees or Lessees) underneath the erstwhile PPT regime.
The PIA phrases are typically perceived as extra investor-friendly in comparison with the erstwhile PPT phrases.
The 2 companions signed paperwork on the conversion of 5 OMLs into 4 PPLs and 26 PMLs, according to the brand new PIA phrases, marking a major step in direction of rising home gasoline provide and increasing international market presence.
Mr Kyari assured CNL that NNPC Ltd. would maintain its partnership with the JV companion in order to create extra worth for each events and develop Nigeria’s footprints within the home and export gasoline markets.
He recommended the Nigerian Upstream Petroleum Regulatory Fee, NUPRC, for its exemplary function in midwifing the conversion.
The Director, Deepwater and Manufacturing Sharing Contract, PSC, of CNL, Michelle Pflueger who underscored the importance of the conversion for each corporations, affirmed CNL’s long-standing dedication to the belongings.
Additionally talking, NNPC Ltd’s Government Vice President, Upstream, Oritsemeyiwa Eyesan, highlighted the benefits of the PIA phrases over the earlier PPT phrases, noting that the conversion was a strategic transfer in direction of the profitable implementation of the PIA.
In his remarks, NNPC Ltd’s Chief Upstream Funding Officer, Bala Wunti, stated that the belongings conversion was anticipated to considerably increase crude oil manufacturing.
Mr Wunti stated the 2 companions had been specializing in attaining the 165,000 barrels of oil per day (bopd) manufacturing goal by year-end 2024.
He emphasised the continued significance of CNL’s operational philosophy in sustaining community stability and facilitating gasoline provide particularly to the home market.NAN
