Chevron Reaffirms Commitment to Nigeria’s Energy Sector As Federal Government Pledges Continued Investment Incentives
The Federal Government has reiterated its commitment to sustaining policies and incentives that will ensure Nigeria remains an attractive destination for energy investments. This assurance was given by the Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri Ph.D., during an inspection of the NNPC/Chevron Nigeria Limited (CNL) Joint Venture EGTL facility in Escravos, Delta State.
“Since we assumed office, things have changed. Our obligation as government is to provide an environment that is globally competitive to allow you expand what you are already doing,” the Minister said. “My duty is to encourage you to expand your investment in the country. We can only grow sustainable production if we have investments. As government, ours is to give you the best incentives that will enable sustainable growth. The time has come for us to develop all available blocks. Where you are not ready to develop, it’s better to farm out to partners rather than wait 20 or 30 years.”
The Minister stressed that the government’s objective remains to increase production and ensure Nigeria remains attractive for capital expenditure distribution in the global oil and gas market.
The Minister commended the NNPC/CNL JV for its operational excellence and urged other operators to consider farming out idle assets to investors with access to capital, noting that government is reviewing the activation of the “drill or drop” provision in the Petroleum Industry Act (PIA).
During the visit, Chevron Nigeria Limited’s General Manager, NNPC/Chevron Joint Venture, Mr. Segun Kuteyi, expressed optimism about the company’s future in Nigeria and lauded the Minister’s commitment to collaboration.
“We have a North Star strategy and are seeing the release of resources from our corporate office, investing significantly in operations so we can bring and monetize the resources we have in place. The future is really bright for Chevron in Nigeria and our partnership with the country,” Mr. Kuteyi said. “We are excited that you are the first Minister to come here – it shows how serious the current administration is. We are proudly the only international company operating around the shore area. Your consistency is exemplary, and we commit to collaborating with you to drive the administration’s agenda.”
Chevron’s Chairman/MD, Mr. Jim Schwartz, also highlighted the enabling role of the Petroleum Industry Act (PIA) and government support in attracting and sustaining investment.
“When we think about the future, your support and the PIA in sticking with the path of attracting investment is really good for us. We have a lot of resources we still want to develop here that will enable growth in production. After 60 years, we are proud to remain one of the largest supporters in the country,” Mr. Schwartz said.
A release by Nneamaka Okafor, Media and Communication aide to the Minister, says, the visit underscores the strong partnership between the Federal Government and Chevron, aimed at unlocking Nigeria’s oil and gas potential, driving sustainable production, and boosting economic growth through collaborative investments.