Chevron Oil Deal: Nigeria’s Revenue To Grow By $5bn

Chevron Oil Deal: Nigeria’s Revenue To Grow By $5bn

The Nigerian National Petroleum Corporation, NNPC, has said Chevron’s 36 oil well deal will boost Nigeria’s revenue by between $2 and $5 billion.

According to a statement by the Corporation on Thursday, the revenue projection of between $2- $5 billion will be earned throughout the duration of the project.

“The package is projected to generate between $2 billion and $5 billion of incremental revenues to the Nigerian government over the life of the project, subject to prevailing oil price in the upcoming years,” the NNPC said.

The $1.2 billion deal signed in 2015, is being funded by both Nigerian and international investors, including Standard Chartered Bank and the United Bank of Africa, UBA.

It said presently, 22 out of 36 wells have been drilled.

The project will also lead to an increase in production of 41, 000 barrels of crude oil per day and 127Million standard cubic feet of gas per day (MMscf/d) “in the years ahead”, the statement revealed.

The Corporation explained that 16 out of the 22 wells drilled are in the swamp of Gbokoda field in Oil Mining Lease, OML 49.

The remaining six wells were drilled in shallow water on the Okan field, in OML 90.

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