The Nigerian National Petroleum Company Limited (NNPC Ltd) and its Joint Venture (JV) partner, Chevron Nigeria Ltd (CNL), have concluded the conversion of five of its JV assets into the Petroleum Industry Act (PIA) terms.

The was contained in a statement yesterday by Chief Corporate Communications Officer, NNPC Ltd, Olufemi Soneye.

He explained that the development was in line with the Petroleum Industry Act (PIA) 2021 provisions of transiting assets from the Petroleum Profit Tax (PPT) into PIA terms.

He stated that under the new PIA regime, all existing Oil Prospecting Licenses (OPLs) and Oil Mining Leases (OMLs) would be automatically converted to Petroleum Prospecting Licenses (PPLs) and Petroleum Mining Leases (PMLs) upon their expiration.

Soneye said: “Nonetheless, an option of voluntary conversion is provided for holders of OPLs and OMLs (Operator, Licensees or Lessees) under the erstwhile Petroleum Profit Tax (PPT) regime.

The PIA terms are generally perceived as more investor-friendly, compared to the erstwhile PPTA terms.”

According to him, during a brief ceremony held at the NNPC Towers on Monday, the two partners signed documents on the conversion of five (5) OMLs into four (4) PPLs and twenty-six (26) PMLs, in line with the new PIA terms, marking a significant step towards increasing domestic gas supply and expanding global market presence.

Speaking at the occasion, Group Chief Executive Officer, (NNPC Ltd), Mr. Mele Kyari, described CNL as one of the most reliable partners for the NNPC Ltd.

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