In light of the current administration’s pursuit to ramp up its crude production, the Nigerian Government has expressed its exclusive right to enforce the “drill or drop” provision as enshrined in the Petroleum Industry Act (PIA) in its efforts to maximize the sector’s crude production potential responsibly.
The nation’s Minister of State for Petroleum, Senator Heineken Lokpobiri, made this assertion while inspecting the NNPCL/Chevron JV EGTL facility in Escravos, Delta State. He encouraged operators to deepen their investments and ramp up production to meet both domestic and international obligations noting that the government of President Ahmed Bola Tinubu will continue to provide incentives that ensure Nigeria remains an attractive destination for investors.
While commending the Chevron Joint Venture partnership with the country and their consistency since they started operations several decades ago, he expressed that Chevron has changed the Nigerian upstream business narrative since they came into operation, from a negative narrative to a positive one.
“I urged other operators to explore all avenues to increase production, including farming out unused assets to those with the financial capacity to utilize them effectively, as the Government has the right to enforce the “drill or drop” provision under the PIA in our effort to maximize the sector’s potential responsibly.
“The time has come for us to develop every available field, the one you feel that you cannot and not within your development plan, is as good as farmout. So that instead of keeping blocks for the next 20 to 30 years, you farm out. So, some other persons who also have access to capital can come and develop, “he asserted.
“Let me start by commending Chevron for their consistency since they started operation several decades ago. Let me let you know that since you came, things have changed from a negative narrative to a possible narrative.
“You are to provide the best environment that will be seemingly and globally competitive and here at Chevron, you are our most reliable partner. We believe there is a lot more we can do with Chevron.” Senator Lokpobiri stated.
The Minister further emphasized that he must continue to encourage Chevron expansion in the industry for the benefit of both the company and Nigeria. He stated that Nigeria’s ultimate goal in the industry is to see how the stakeholders can increase production.
“Nigeria’s objective is to provide incentives to this industry so that Chevron can continue to find the industry attractive. Nigeria is committed to deepening this relationship,” He added
In response, Chevron management thanked the Minister for the unwavering support he has accorded the company since he assumed duty, while assuring its unalloyed mission to remain a global energy company first to be admired for its people in partnership and performance.
“So, the Honorable Minister, our business has continued to receive support from you; we are really proud, encouraged, and motivated. You have been instrumental in driving growth, and we are really proud of you and your leadership. We connect to collaborate with you in driving the agenda of the current administration.
“We have a lot of resources to develop here. We have a lot of gas in the ground. So, it means a lot for you to come here to see our business to know we are such a strong partner in what we want to do here in Nigeria together to leverage growth and production to hit the targets,” Chervon posited.
Chevron Nigeria Limited (CNL) is involved in natural gas projects in the western Niger Delta and Escravos areas, including the Escravos Gas Plant (EGP), the Escravos Gas-to-Liquids (EGTL) facility and the Sonam Field Development Project.
CNL operates the EGP, which has a total capacity of 680 million cubic feet per day of natural gas and LPG and a condensate export capacity of 58,000 barrels per day. Chevron and the NNPC operate the EGTL facility, a 33,000-barrel-per-day gas-to-liquids plant.
