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Chevron secures $1.4 billion financing for drilling project around Escravos

Chevron Nigeria Ltd (CNL) has announced it has secured financing of $1.4 billion for drilling projects across the NNPCL/CNL JV infill drilling program scheduled for the period between 2022 and 2026 encompasses the drilling of 37 wells in the shallow offshore and onshore Escravos region, along with the construction of associated facilities.

This was stated by the management of the company led by Mr Clay Neff during a meeting with President Bola Tinubu at the state house in Abuja.

Mr. Neff affirmed that the company will continue to adhere to the highest standards while fulfilling its investment commitments in Nigeria.

He emphasized Chevron’s contributions to the domestic gas supply, citing the delivery of 25% of gas through a joint venture with NNPC Limited.

Additionally, he mentioned Chevron’s commitment to scaling up investments in the country, as evidenced by recent efforts in a new phase of development.

He said the developments include,

“The conversion, under the Petroleum Industry Act, of all the NNPCL/Chevron Nigeria Limited Joint Venture (JV), Oil Mining Leases (OMLs), and Agbami OML 127 to Petroleum Mining Leases and Petroleum Prospecting Licences (PPLs)”
“Entry into OPL 215 block to boost deep-water development opportunities; signing of the 20-year renewal of three deepwater leases; commencement of seismic data acquisition in several deepwater leases;”
“Commencement of life extension work on the Agbami project, and, in partnership with NNPCL, securing of $1.4 billion financing to fund the NNPCL/CNL JV infill drilling programme between 2022 to 2026, which includes the drilling of 37 wells in the shallow offshore and onshore Escravos area and associated facilities.”

Mr. Neff also informed President Tinubu that Chevron’s average annual tax and royalty remittances for the past three years had totalled $3.4 billion.
Tinubu appreciates Chevron’s commitment to investing in Nigeria

On his part, President Tinubu expressed appreciation for Chevron Corporation’s dedication to expanding its investments in both shallow and deep-water operations in Nigeria. He specifically emphasized the ongoing $1.4 billion drilling project in collaboration with the Nigerian National Petroleum Company Limited (NNPCL).

The President further assured the multinational company of his administration’s commitment to implementing necessary interventions in the oil and gas industry, aligning with the provisions outlined in the Petroleum Industry Act (PIA).

He said,

“You must see the PIA as a legacy law. We assure you of quick interventions and turnaround on any issue you may have in your operations in our country.”
“Nigeria is proud of the 60-year partnership with Chevron, and we believe this partnership will be strengthened to add mutually beneficial value for the benefit of your shareholders as well as the living standards and economic opportunities of our population.”