Can you provide a brief overview of Chevron’s upstream presence and recent main developments at its key assets?

Chevron Nigeria Limited (CNL) started operations in Nigeria in 1961. CNL operates under a JV arrangement with the Nigerian National Petroleum Company Limited (NNPCL/CNL JV). CNL and its affiliates in Nigeria have assets onshore and in near-offshore regions of the Niger Delta, including interests in non-operated fields. We have extensive interests in deepwater operations in Nigeria, including the Agbami field, one of Nigeria's largest deepwater discoveries, operated by Star Deep Water Petroleum Limited, an affiliate of CNL. Chevron Petroleum Nigeria Limited, another CNL affiliate, has a non-operated interest in the Usan field. 

CNL has made significant progress in the development of the Nigerian domestic gas market and continues to collaborate with NNPCL and the Federal Government of Nigeria to find mutually beneficial energy solutions for the country. We are proud to have operated in Nigeria for more than six decades, contributing to the growth and prosperity of the country.

Our recent efforts to position for a new phase of growth include the new JV lease agreements with the NNPCL and Agbami OML 127 deep water lease, under the Petroleum Industry Act (PIA), signaling our commitment to further exploration and development. We also recently acquired the OPL 215 block to boost deepwater development opportunities, signed a 20-year renewal of 3 deepwater leases and started seismic data acquisition in several of our deepwater leases, including the Agbami field.

Can you highlight the progress on the ongoing NNPCL/CNL JV infill drilling program?

CNL and its joint venture partner, NNPCL, recently secured a US$1.4 billion facility to fund its NNPCL/CNL JV infill drilling program. The facility recognizes the strategic imperative to supplement funding to enable high-impact projects that can deliver near-term production. The project includes 37 wells in the Escravos shallow-water offshore area. It is also in alignment with the NNPCL/CNL JV’s lower-carbon objectives with all the wells connected to facilities which do not flare. 

This program is the third externally financed project by the NNPCL/CNL JV. Since 2015, over US$2 billion has been generated by these three externally financed projects, which will deliver a total of over 80 wells at the end of the current drilling program. 

How is CNL working towards reducing routine gas flaring?  

We have a wide variety of projects underway to reduce emissions, from improving methane detection to rethinking facilities design, optimizing equipment, and deploying new operational practices. We have reduced routine gas flaring by 97% in the past 10 years. 

CNL has been successful in leading and investing in major initiatives through partnership with NNPCL and others. These include the development of the Escravos Gas Plant (EGP) facilities to enable reduction of gas flaring and position CNL as one of the largest suppliers of domestic gas in Nigeria. As of 2023, CNL contributes about 26% of gas to the domestic market in Nigeria. In partnership with the ECOWAS, CNL led the development of the ~700 km WAGP project through which Nigeria supplies gas to Benin, Togo, and Ghana, helping to power the region and boost economic development.

What are the main challenges facing oil producers in Nigeria and how do you think the authorities could make Nigeria more competitive among other jurisdictions in Chevron’s global portfolio?

CNL requires the continued partnership of all stakeholders towards reducing the cost of doing business and instilling confidence in our investors to enable our investment and growth strategy to be successful and competitive for capital across a global portfolio.

We are supportive of the government’s efforts to address high costs, security and protracted contracting issues in the industry. 

What are CNL’s priorities for the coming years?

CNL remains committed to ensuring safe, reliable, and efficient operations in Nigeria and delivering affordable, reliable, and ever cleaner energy for Nigeria, the West African region, and the world at large.  

We are optimistic about the future of the energy industry in Nigeria, particularly recognizing gas as the transition fuel towards a lower-carbon environment, with the right policies, laws and regulations that will stimulate growth in the industry.