.As Nigeria aims to attract more Energy investments
FAVOUR ISHEMBER, Abuja
The Federal Government of Nigeria has reaffirmed its commitment to boosting oil production and making the country an attractive destination for foreign investment in the global energy sector.
Minister of State for Petroleum Resources, Senator Heineken Lokpobiri, made this assurance during a visit to the NNPC/Chevron Nigeria Limited Joint Venture’s Escravos Gas-to-Liquids facility in Delta State.
Lokpobiri emphasized the government’s objective to increase oil production and attract capital expenditure.
He assured that the government will sustain policies and incentives to make Nigeria an attractive destination for energy investments.
“Since we assumed office, things have changed. Our obligation as government is to provide an environment that is globally competitive to allow you to expand what you are already doing.”
“My duty is to encourage you to expand your investment in the country. We can only grow sustainable production if we have investments.
As a 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 said.
The minister commended the NNPC/Chevron JV for its operational excellence and encouraged other operators to farm out idle assets to investors with access to capital.
Lokpobiri noted that the government is reviewing the activation of the “drill or drop” provision in the Petroleum Industry Act.
On his part, Chevron Nigeria Limited’s General Manager, Segun Kuteyi, expressed optimism about the company’s future in Nigeria and praised the Minister’s commitment to collaboration.
Kuteyi highlighted Chevron’s North Star strategy, which involves releasing resources from the corporate office to invest in operations and monetize existing resources.
He appreciated the Minister’s consistency and committed to collaborating with the government to drive its agenda.
“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 in the shore area. Your consistency is exemplary, and we commit to collaborating with you to drive the administration’s agenda.”
The GM explained that the Escravos Gas-to-Liquids facility, operated by Chevron Nigeria Limited and NNPC, has a capacity of 33,000 barrels per day.
The project converts natural gas into premium, environmentally friendly fuel, diesel, and GTL naphtha products.
Earlier, Chevron’s Chairman/MD, Jim Schwartz, expressed pride in the company’s 60-year presence in Nigeria and highlighted the enabling role of the Petroleum Industry Act in attracting investment.
He noted that the visit underscores the strong partnership between the Federal Government and Chevron, aimed at driving sustainable production and boosting economic growth through collaborative investments.
Schwartz emphasized the importance of government support and the PIA in sticking to the path of attracting investment, enabling growth in production, and developing resources.
“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.
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