NNPCL, Chevron signal settlement to transform 5 OMLs to PPLs, PMLs

The Nigerian Nationwide Petroleum Firm (NNPC) Restricted says it has signed an settlement with Chevron Nigeria Ltd (CNL), its three way partnership (JV) accomplice, on the conversion of 5 oil mining lease (OMLs) into 4 petroleum prospecting licence (PPLs) and 26 petroleum mining lease (PMLs).

In a press release by Femi Soneye, NNPC’s spokesperson, the nationwide oil firm mentioned the signing ceremony was held on Monday on the NNPC Towers, Abuja.

NNPC mentioned the signing is in keeping with the provisions of the Petroleum Trade Act (PIA) however didn’t specify the transformed belongings.

“Consistent with the Petroleum Trade Act (PIA) 2021 provisions of transiting belongings from the Petroleum Revenue Tax (PPT) into PIA phrases, the NNPC Ltd. and its Joint Enterprise (JV) accomplice, Chevron Nigeria Ltd (CNL), have concluded the conversion of 5 of its JV belongings into the PIA phrases,” the corporate mentioned.

Underneath the brand new PIA regime, NNPC mentioned “all present Oil Prospecting Licenses (OPLs) and Oil Mining Leases (OMLs) could 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 Petroleum Revenue Tax (PPT) regime. The PIA phrases are typically perceived as extra investor-friendly, in comparison with the erstwhile PPTA phrases,” the oil agency mentioned.

“In the course of the ceremony, the 2 companions signed paperwork on the conversion of 5 (5) OMLs into 4 (4) PPLs and twenty-six (26) PMLs, in keeping with the brand new PIA phrases, marking a big step in the direction of rising home fuel provide and increasing international market presence.”

Talking on the event, Mele Kyari, NNPC’s group chief government officer (GCEO), described Chevron as one of many nationwide oil firm’s most dependable companions.

“Over time, Chevron has been a accomplice of selection that has not contemplated utterly divesting/exiting (oil manufacturing in) the shallow water and we’re pleased with them,” he added.

Kyari assured Chevron that NNPC would keep its partnership to create extra worth for each events and develop Nigeria’s footprints within the home and export fuel markets.

He counseled the Nigerian Upstream Petroleum Regulatory Fee (NUPRC) for its excellent position in modifying the conversion.

On her half, Michelle Pflueger, director, deepwater and manufacturing sharing contract (PSC) of Chevron, pressured the importance of the conversion for each corporations, affirming CNL’s long-standing dedication to the belongings.

Additionally talking, Oritsemeyiwa Eyesan, NNPC government vice-president, upstream, highlighted the advantages of the PIA phrases over the earlier PPT phrases, including that the conversion was a strategic transfer in the direction of the profitable implementation of the PIA.

In his remarks, Bala Wunti, NNPC’s chief upstream funding officer, mentioned the belongings’ conversion is anticipated to considerably bolster crude oil manufacturing — with the 2 companions specializing in attaining 165,000 barrels per day (bpd) crude oil manufacturing goal by year-end.