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Nigeria to benefit from Chevron’s $33 billion Investment

By on December 11, 2012

As part of its new drive to push development and aid the acceleration of economic growth in the countries in which it has major, American  Oil major  Chevron also plans to invest big time in Nigeria.

This is part of its $36.7billion capital and exploratory programme for year 2013 which includes major gas related projects which for Nigeria is timely as it desperately needs increased capacity in gas projects especially gas-to-power initiative which will help boost electricity supply in the country.

Apart from Nigeria, other countries to benefit from the investment include Australia, Angola, Kazakhstan and the Republic of Congo, meaning more economic activities and industrialization that will initiate another process for the emergence of Gas subsidiary firms, thereby providing new jobs to tackle unemployment in these countries.

This year the American Multinational has not had an easy ride in the Nigerian terrain as it has faced resistance in its Outsourcing policy which the Nigerian Union Of Petroleum and Natural Gas workers (NUPENG) described as casualization of workers.

Chevron in its strategy is planning to channel its investment on improving crude oil and natural gas recovery and thereby tackling the incidence of decline in existing producing assets it has across the globe.

On its Upstream operations and activities  the Company plans to expand its Nigeria’s Usan and Agbami deepwater fields and construction of the Mega project Escravos gas-to- liquid facility which is crucial to the upgrade and development of the Oil and Gas operations.

Chief Executive Officer of Chevron Mr John Watson stated on his company’s operational plan that”Next year’s programme supports several projects currently under construction, including our Australian LNG projects and United States deepwater developments. As these and other projects come online, we anticipate production will reach our 2017 goal of 3.3 million barrels per day. With our strong balance sheet and industry-leading producing margins, I further expect to continue our pattern of significant stockholder distributions.”

This will  become one of the major landmark for Nigeria’s Energy sector even as the President Goodluck Jonathan Administration is aggressively driving foreign investment to facilitate growth and improvement in the Nation’s Gross Domestic Product (GDP), with 2020 as its goal of attaining  Global relevance and competitiveness.