Chevron Secures $1.4 Billion Financing for Drilling Project Around Escravos

Chevron Secures $1.4 Billion Financing for Drilling Project Around Escravos

Chevron Secures $1.4 Billion Funding for Escravos Drilling Project: A Boost to Nigeria’s Energy Landscape.


Chevron Nigeria Ltd (CNL) recently announced the successful procurement of $1.4 billion in financing for its ambitious drilling endeavors under the NNPCL/CNL JV infill drilling program. The project, scheduled between 2022 and 2026, encompasses the drilling of 37 wells in the shallow offshore and onshore Escravos region, along with the construction of associated facilities.

This significant milestone was unveiled by the company’s management, led by Mr. Clay Neff, during a meeting with President Bola Tinubu at the state house in Abuja. Mr. Neff reaffirmed Chevron’s commitment to upholding the highest standards while fulfilling its investment commitments in Nigeria.

Highlighting Chevron’s substantial contributions to the domestic gas supply, Mr. Neff noted the delivery of 25% of gas through a joint venture with NNPC Limited. He also underscored Chevron’s dedication to increasing investments in the country, citing recent efforts in a new phase of development.

Key developments include:

  1. Conversion, under the Petroleum Industry Act, of all NNPCL/Chevron Nigeria Limited Joint Venture (JV) Oil Mining Leases (OMLs), and Agbami OML 127 to Petroleum Mining Leases and Petroleum Prospecting Licences (PPLs).
  2. Entry into OPL 215 block to enhance deep-water development opportunities.
  3. Signing of a 20-year renewal for three deepwater leases.
  4. Commencement of seismic data acquisition in several deepwater leases.
  5. Initiation of life extension work on the Agbami project.
  6. In partnership with NNPCL, securing $1.4 billion financing to fund the NNPCL/CNL JV infill drilling program between 2022 to 2026, covering 37 wells in the shallow offshore and onshore Escravos area and associated facilities.

During the meeting, Mr. Neff also informed President Tinubu that Chevron’s average annual tax and royalty remittances for the past three years totaled an impressive $3.4 billion.

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President Tinubu expressed his appreciation for Chevron Corporation’s commitment to expanding investments in both shallow and deep-water operations in Nigeria. He specifically highlighted the ongoing $1.4 billion drilling project in collaboration with the Nigerian National Petroleum Company Limited (NNPCL). Tinubu assured Chevron of his administration’s dedication to implementing necessary interventions in the oil and gas industry, aligning with the provisions outlined in the Petroleum Industry Act (PIA).

President Tinubu stated, “You must see the PIA as a legacy law. We assure you of quick interventions and turnaround on any issue you may have in your operations in our country. Nigeria is proud of the 60-year partnership with Chevron, and we believe this partnership will be strengthened to add mutually beneficial value for the benefit of your shareholders as well as the living standards and economic opportunities of our population.”

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