Chevron and Shell Should See Nigerian Renewals

Nigeria’s minister of petroleum, Diezani Alison-Madueke, expects to renew Chevron and Shell’s expired onshore licenses by next month.

“In order to show our commitment to a vibrant upstream sector ... we have started the renewal of leases in good faith ... renewals with Chevron and Shell are expected to be concluded by June at the latest,” Alison-Madueke said in the capital Abuja.

ExxonMobil saw its licenses renewed in February.

Several of these licenses have been expired for a number of years; needless to say negotiations with the government were slow going. There were also delays because the Petroleum Industry Bill (PIB) has yet to become law. There has been a reluctance on both sides of the licenses to sign any renewals as the PIB is likely to increase royalties and taxes when it finally becomes law.