Chevron and Nigeria’s state oil company have converted five exploration and production licences in the West African nation to meet the terms of the current Petroleum Industry Act (PIA), a move they hope will help hit an oil production goal of 165,000 barrels per day within months.

The PIA became law in 2021 and allows for the transitioning of existing oil prospecting licences (OPLs) and oil mining leases (OMLs) into petroleum prospecting licenses (PPLs) and petroleum mining leases (PMLs), upon their expiry.

However, the legislation also allows companies to voluntary convert their acreage into PPLs and PMLs, which is what Chevron and state-owned NNPC chose to do.

On Monday, the two players signed documents covering the conversion of five OMLs into four PPLs and 26 PMLs, with the aim of increasing domestic gas supplies.

NNPC chief executive Mele Kyari described Chevron as one of its most reliable partners.

“Over the years, Chevron has been a partner of choice that has not contemplated completely divesting or exiting oil production assets in shallow water and we are proud of them.”

Michelle Pflueger, deepwater director for Nigeria and Mid-Africa, confirmed the supermajor’s long-standing commitment to these assets.