Chevron Makes New Oil Discovery in Nigeria
Chevron Nigeria Limited (CNL), a subsidiary of Chevron Corporation, has announced the discovery of a new oil field estimated to hold 17,000 barrels of oil per day (bpd), a move expected to boost Nigeria’s ailing oil production.
The “near-field discovery” was made by the Meji NW-1 spud in Petroleum Mining Lease 49, representatives of Chevron told S&P Global Commodity Insights in a statement on October 18.
The block is located in the shallow offshore area of the Western Niger Delta.
“This accomplishment is consistent with CNL’s intention to continue developing and growing its Nigerian resources, including the onshore and shallow water areas,” the company said in the statement, “and 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 company declined to comment further.
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 declining in recent years due to a variety of factors, including sabotage, theft, and ageing 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 license 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.
Nevertheless, the find is a fillip for Nigeria’s economy and illustrates the contrast with Chevron’s peers, who are leaving 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.
Meanwhile, Shell has agreed to sell its onshore business to the Renaissance consortium of five mostly local companies, ExxonMobil has signed a deal with Seplat and Equinor and TotalEnergies is selling assets to Nigeria-focused Chappal Energies.
The transactions have been met with sluggish approvals and, in some cases, official opposition.
