Chevron commits to Nigeria’s 2025 licensing round, unveils plans for 2026

Chevron Nigeria has commended the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) as a business enabler and expressed its intention to participate in the 2025 licensing round.

Jim Swartz, Chairman and Managing Director of Chevron Nigeria/Mid-Africa Business Unit, expressing the company’s interest during his visit to the NUPRC’s headquarters in Abuja on Friday said, “We will participate in the next licensing round. Our intention is to continue to grow in Nigeria,” he said.

The NUPRC on Monday, announced the commencement of the Nigeria 2025 licensing round, listing 50 oil and gas blocks across onshore, swamp/shallow water and offshore terrains spanning diverse basins.

The Nigerian government expects to attract about $10 billion in investments through the licensing round. It is also expected to add up to 2 billion barrels of oil output over the next 10 years with an estimated 400,000 barrels/Day of production volumes when the blocks are fully operational.

Swartz also described the passage of the Petroleum Industry Act as a watershed moment in Nigeria’s economic history. He said the PIA, coupled with the style of the NUPRC’s enforcement has restored predictability and made Nigeria an investment destination once more.

“The NUPRC listens. The NUPRC supports business. As a regulator, the NUPRC is transparent.

“My assessment is that you have continued to support us. You have shown that Nigeria is a leader in this sector. Chevron specifically appreciates the enforcement of the willing buyer, willing seller provision. I am also happy about your position on decommissioning and abandonment which came up at the National Assembly recently,” he said.

Swartz added that Chevron has recorded zero incidents of sabotage in the last one year. “Chevron has not recorded any oil theft or attacks on our pipelines this year. This is the longest we’ve gone without oil theft.”

He also revealed that TotalEnergies Nigeria had signed a farm-out agreement with Chevron for a 40 percent stake in the PPL 2000 and PPL 2001 offshore exploration licences in Nigeria adding that company expects a swift approval as it sought to develop the assets quickly.

The Chevron boss also disclosed some of the company’s goals for 2026 including plans to bring in a drilling rig in late 2026 on a newly discovered resource near Egbami as well as an extension of the lease of some assets which it is already developing.

Read also: Chevron targets $6-8 bln in free cash flow growth by 2026

In his remarks, Gbenga Komolafe, Commission Chief Executive, NUPRC, said Chevron’s decision to take part in the 2025 licensing round was evidence that Nigeria remained a key investment destination.

He said although the 2024 licensing round was described as the most transparent in Nigeria’s history, the NUPRC was working to taking up a notch.

“We are committed to delivering a transparent licensing round which will even be better than that of 2024. It will be transparent and digital. Our portal has gone live and we have 50 fields on offer,” Komolafe said.

Join BusinessDay whatsapp Channel, to stay up to date