In line with its commitment to Nigerian Content Development, Chevron Nigeria Limited (CNL) announced it has spent a combined total of $10 billion on Nigerian suppliers and service providers in the last 10 years.
Highlighting the opportunities and new approaches to the future of hydrocarbons at the 2021 Nigerian International Petroleum Summit (NIPS), Chevron Nigeria’s managing director, Rick Kennedy noted that more investment in local content structures alongside robust policies and regulations are major keys in addressing existing challenges facing Nigeria’s oil and gas sector.
“Chevron has in the last 10 years spent an estimated annual average of $1 billion on Nigerian suppliers and service providers in line with its commitment to Nigerian Content Development,” Kennedy, who was represented by Monday Ovuede, director of Nigerian National Petroleum Corporation (NNPC)/CNL Joint Venture, said at the conference in Abuja.
He noted that digital technology/innovations; cost efficiency initiatives; sustained social investments as well as continued support for Nigerian Content Development are some of the ways oil firms can innovate in a post COVID era.
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Chevron’s CEO identified opportunities in lowering carbon emissions and harnessing Nigeria’s gas resources as key enablers in complementing the new approaches to future of hydrocarbons in the Nigerian oil and gas industry in the post COVID-19 era.
According to him, the global community has continued to scale up the collaboration towards lower carbon emissions, adding that Chevron supports global efforts to reduce carbon emissions and is actively investing in operations to improve environmental performance while also working with industry to develop new innovative technology and best practices to achieve these objectives.
He emphasised that CNL’s gas strategy is to end routine gas flaring and build a profitable gas business through a portfolio of projects
“CNL and its joint venture (JV) partners, NNPC, has progressively reduced routine gas flaring by over 95percent in the past 10 years and remained ahead in terms of maximizing supply of on-spec gas into the Nigerian domestic market,” Kennedy said.
At the five-day summit in Abuja, Kennedy also applauded the NNPC/CNL’s Gas Sales and Aggregation Agreements with Egbin Power Plc, Dangote Fertilizer Limited, and Olorunsogo Generation Company Limited all of which are contributing positively to Nigeria’s domestic gas development
He also acknowledged the positive impact of the West African Gas Pipeline (WAGP) through which Nigeria supplies gas to countries in the West African sub-region – specifically, Ghana, Togo, and Benin – thus, helping to boost economic development in West Africa.
Kennedy noted that Chevron has joined other energy companies supporting the Methane Guiding Principles to reduce methane emissions from natural gas exploration and production operations through digital innovation and deployment of best practices, which include designing, constructing, and operating its facilities in a manner to reduce emissions from its operations.
Recall that the Methane Guiding Principles is a global Oil and Gas Climate Initiative, which the industry is using to tackle the issue of methane emissions.
