Chevron Nigeria Limited, a subsidiary of Chevron Corporation, has announced the discovery of a new oil field with an estimated production capacity of 17,000 barrels of oil per day.
The discovery comes as international oil companies increasingly shift investments from onshore to offshore operations.
According to a report by S&P Global Commodity on Friday, the “near-field discovery” was made by the Meji NW-1 spud in Petroleum Mining Lease (PML) 49. The block is located in the shallow offshore area of the Western Niger Delta.
The report revealed that the spud reached a depth of 8,983 feet, encountering 690 feet of hydrocarbons within Miocene sands. Well operations were successfully completed earlier this month.
“This achievement aligns with Chevron Nigeria Limited’s strategy to continue expanding its resources in Nigeria, including both onshore and shallow water areas,” the report stated. “It also supports Chevron’s broader global exploration efforts to discover new resources that extend the life of existing assets and expedite production in current operational regions.”
The discovery comes as Nigeria’s oil sector faces significant challenges, with production declining in recent years due to issues such as sabotage, theft, and ageing infrastructure.
Data from S&P Global Commodity Insights shows Chevron holds a 40% stake in Oil Mining License 49, in partnership with the Nigerian National Petroleum Corporation (NNPC) under a joint venture. The Meji field, where production first began in 1969, peaked at 51,000 barrels per day (bpd) in 2005 but has since decreased to around 17,000 barrels of oil equivalent per day (boepd), most of which is crude oil.
While no timeline for production from the Meji NW-1 has been specified, the new discovery is expected to help offset Nigeria’s declining oil output and contribute to job creation and revenue generation for local communities.
In the meantime, other international players have begun to exit Nigeria’s onshore and shallow water sectors. Eni, for example, recently sold its Nigerian assets to local firm Oando.
Source: Punch
