Chevron says won’t quit Nigeria, cites commitment through investment
By Jeph Ajobaju, Chief Copy Editor
Chevron Nigeria Limited (CNL) has no plans to close shop and exit Nigeria, the oil major says in a pushback against false narratives in the media.
Chevron is the operator of the joint venture with the Nigerian National Petroleum Limited (NNPC).
A statement issued by Chevron General Manager (Policy, Government and Public Affairs) Esimaje Brikinn explained the company has demonstrated its commitment to Nigerian by its investment in the country.
A report had said new investment outlay announced by Chevron confirmed rumour of its exit plan to leave Nigeria.
It quoted Chevron as saying it would use 70 per cent of its capital allocation for production on oil fields in the United States, Argentina, and Canada and rein in investments in large international oil projects and focus more on investing in the Americas.
But report of Chevron quitting Nigeria is “misleading” and the public should “note that the allegation is untrue and does not represent the position of Chevron in Nigeria,” the company clarified.
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Chevron remains committed to Nigeria
“CNL remains committed to sustaining the existing mutually beneficial and long-term relationship with Nigeria and other stakeholders as demonstrated by our significant economic and social investments in Nigeria over the last six decades.
“These investments have generated visible and viable socio-economic development in several communities across Nigeria,” Chevron said, per reporting by ThisDay.
“CNL will, along with industry peers in Nigeria, continue to engage the government on policies and opportunities to ensure global competitiveness and sustainability of the petroleum industry.”
Chevron boss says Nigeria’s oil theft is organised crime
Crude oil theft in the Deep South is an organised crime that is quite different from the agitation of host communities about environmental degradation and demand for compensation, Chevron boss Richard Kennedy declared in July last year.
The Managing Director of Chevron Nigeria/Mid Africa Business Unit stressed the point at the Nigeria Oil and Gas (NOG) Conference in Abuja when he was asked to comment on host community provisions in the Petroleum Industry Act (PIA).
“From my experience, the issue with crude oil theft should not be confused with host community issues. It is much, much, much bigger than that. It is completely different from host community issues. Quite frankly it is organised crime,” Kennedy said.
“The volume of crude that is being stolen is well beyond comprehension. You can see some of the figures in the press, maybe it’s about 100,000 barrels per day at $100 per barrel and that’s $10 million per day that is being stolen.
“And NNPC owns 60 per cent while taxes of 85 per cent are paid so it’s a huge loss for the country.”
Oanda Group Chief Executive Officer Wale Tinubu disclosed that about 20 per cent of the company’s daily crude production is stolen.
“There has been a 43 per cent reduction in our production from March 2020 to May 2022. We lose almost 20 per cent of our daily crude production to oil thieves and pipeline vandals and 20,000 barrels a day of oil is lost to oil theft.
“Basically, some three million barrels on average yearly are lost to oil theft and pipeline vandalism.”