NNPCL, Chevron Completed Conversion of Joint Venture Assets

SEATTLE (Scrap Monster): The Nigerian National Petroleum Company Limited (NNPCL) and its joint venture partner, Chevron Nigeria Ltd announced completion of conversion of five joint venture assets, in accordance with the Petroleum Industry Act of 2021.

It is anticipated that the asset conversion will significantly increase the production of crude oil. By the end of the current year, the two businesses hope to produce 165,000 barrels of oil per day.

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In a statement made yesterday, Olufemi Soneye, NNPC's Chief Corporate Communications Officer, stated that both partners have already signed the requisite documentation for the conversion deal.

As per the agreement, five Oil Mining Leases were converted into four Petroleum Prospecting Licenses and 26 Petroleum Mining Leases. The action should increase the supply of gas in the country. At the same time, it will expand Nigeria’s footprint in the global oil market.

The cooperation intends to generate value for both parties and bolster Nigeria's position in the domestic and export gas markets, according to Mele Kyari, Group CEO of NNPC. NNPC is dedicated to maintaining its relationship with Chevron, as Chevron has been instrumental in supporting NNPC in guaranteeing a consistent supply of gas to the domestic market.