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The Nigerian National Petroleum Corporation (NNPC) Limited has announced the signing of an agreement with Chevron Nigeria Ltd (CNL), its joint venture (JV) partner, for the conversion of five oil mining licenses (OMLs) into four oil exploration licenses (PPLs) and 26 oil mining licenses (PMLs).
This comes despite the conversion being expected to significantly increase crude oil production — with both partners focused on reaching a crude oil production target of 165,000 barrels per day (bpd) by December 2024.
According to a statement by Femi Soneye, Chief Corporate Communications Officer, NNPC Ltd, he disclosed that the signing ceremony was held on Monday at the NNPC Towers, Abuja.
He added that the signing was in accordance with the provisions of the Petroleum Law (UU Perminyakan), but did not mention the assets being converted.
“In accordance with the provisions of the Petroleum Industry Act (PIA) 2021 on the transfer of assets from Petroleum Profits Tax (PPT) to PIA provisions, NNPC Ltd. and its Joint Venture (JV) partner, Chevron Nigeria Ltd (CNL), have completed the conversion of five of its JV assets to PIA provisions.”
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“All existing Oil Mining Business Permits (IUP) and Oil Mining Business Permits (IUPM) will automatically change to Oil Mining Business Permits (IUPM) and Oil Mining Business Permits (IUPM) after their validity period ends.”
“Nevertheless, a voluntary conversion option was provided to OPL and OML holders (Operators, Licensees or Lessees) under the previous Petroleum Profits Tax (PPT) regime. The provisions of PIA are generally considered to be more favorable to investors, compared to the provisions of the previous PPTA,” the oil company said.
“During the ceremony, the two partners signed documents regarding the conversion of five (5) OMLs into four (4) PPLs and twenty-six (26) PMLs, in line with the provisions of the new PIA, marking a significant step towards increasing domestic gas supplies and expanding global market presence.”
In his remarks, Bala Wunti, NNPC’s head of upstream investments, said the asset conversion is expected to significantly boost crude oil production — with both partners focused on achieving a crude oil production target of 165,000 barrels per day (bpd) by the end of the year.
By: Babajide Okeowo
The post NNPC, Chevron sign agreements to convert five OMLs to PPLs, PMLs, target 165,000 barrels per day by December 2024 appeared first on Latest Nigeria News | Headlines from Ripples Nigeria.
