Chevron Discovers New Oil Well In Nigeria

Chevron Discovers New Oil Well In Nigeria

Chevron Nigeria Limited (CNL) has announced the discovery of a new oil field in Nigeria.

The “new gold mine” estimated to hold 17,000 barrels of oil per day (bpd), is located in the shallow offshore area of the Niger Delta.

The development is expected to boost Nigeria’s ailing oil production.

According to Chevron, the “near-field discovery” was made by the Meji NW-1 spud in Petroleum Mining Lease 49.

Chairman and Managing Director of Chevron, Jim Swartz, confirmed the discovery in a statement on Friday issued by its General Manager of Policy Government and Public Affairs, Olusoga Oduselu.

Oduselu stated that the Well was spud on September 2 and reached a total depth of 8,983ft measured depth on September 13, 2024.

He noted that the Well encountered about 690 ft of hydrocarbons within Miocene sands and appraised an extension of the Meji field.

The Chevron spokesperson said Well operations were completed, while the rig left the location on October 2.

Oduselu added that the accomplishment is consistent with CNL’s intention to continue developing and growing its Nigerian resources including onshore and shallow water areas.

“This (also) supports Chevron’s broader global exploration strategy to find new resources that extend the life of producing assets in existing operating areas and deliver production with shorter development cycle times.

“The NNPC-CNL JV will continue to collaborate with the Nigerian government and other stakeholders to support the development of the Nigerian oil and gas industry and the Nigerian economy in general”, he added.

Daily Trust reports that the discovery of the new field comes at a time when Nigeria is facing challenges in its oil sector.

The country’s oil production has been on the decline recently over sabotage, theft, ageing and ailing infrastructure.

Data from S&P Global Commodity Insights showed Chevron holds a 40 percent interest in Oil Mining License (OML) 49 alongside NNPC in a joint venture.

Further findings showed production from the Meji field peaked at 51,000 bpd in 2005, but has since fallen to some 17,000 boepd, most of it crude oil.

Discoveries were first made on the licence in 1965, with production starting four years later.

Chevron did not offer a timeline for production at Meji NW-1 or any detail on how much the asset could produce.

However, the find is a fillip for Nigeria’s economy and illustrates the contrast with Chevron’s peers.

Many of them are exiting the Niger Delta in their droves in favour of deep-water opportunities in Nigeria, less risky jurisdictions and frontiers like Namibia and Guyana.

The new field is expected to help offset some of these declines and boost Nigeria’s oil production.

It is also expected to create jobs and generate revenue for the local communities where it is located.

Eni has already quit the Nigerian onshore and shallow water, selling its business to local firm Oando.