Chevron Nigeria Limited (CNL), a subsidiary of Chevron Corporation, has announced the discovery of a new oil field estimated to hold 17,000 barrels per day (bpd) of crude oil, helping to boost Nigeria’s sluggish oil production. The amount is expected to increase.
The “near-field discovery” was made by the Meji NW-1 spud on oil mining lease 49, a Chevron representative told S&P Global Commodity Insights in an Oct. 18 statement.
This block is located in a shallow offshore area in the western Niger Delta.
“This achievement is consistent with CNL’s intention to continue to develop and grow Nigeria’s resources, including onshore and shallow water,” the company said in a statement. Produce assets in existing operating areas and achieve production with shorter development cycle times. ”
The company declined further comment.
The discovery of this new field comes at a time when Nigeria is facing challenges in its oil sector. The country’s oil production has declined in recent years due to a variety of factors, including sabotage, theft and aging infrastructure.
Chevron holds a 40% interest in 49 oil mining licenses (OMLs) in the joint venture alongside NNPC, according to data from S&P Global Commodity Insights.
Also read: Here’s how much ExxonMobil and Chevron paid foreign governments for oil exploration
Further findings show that production from the Meji field peaked in 2005 at 51,000 barrels per day, but has since declined to about 17,000 barrels per day, most of which was crude oil. .
It was first discovered for license in 1965 and production began four years later.
Chevron did not provide details about its production schedule at Meji NW-1 or how much the asset could produce.
Nevertheless, the discovery bodes well for Nigeria’s economy, with Chevron’s peers leaving the Niger Delta in search of opportunities in Nigeria’s deep waters and moving to less risky jurisdictions and remote areas such as Namibia and Guyana. Showing contrast.
The new oil fields are expected to help offset some of these declines and increase Nigeria’s oil production. It is also expected to create jobs and bring in revenue to the local communities where they are located.
Eni has already exited its onshore and shallow water operations in Nigeria and sold the business to local company Oando.
Meanwhile, Shell has agreed to sell its onshore operations to the Renaissance consortium of five primarily local companies, ExxonMobil has signed deals with Seplat and Equinor, and Total Energy has acquired Nigeria-focused Chappal Energy. sell assets;
The deals have been slow to approve and, in some cases, have faced government opposition.
Oladehinde Oladipo
Dipo Oladehinde is a seasoned energy analyst with experience across Nigeria’s energy sector and relevant know-how on Nigeria’s macroeconomics. He provides a combination of market intelligence, financial analysis, industry insights, micro- and macro-level analysis of a wide range of regional and international issues, as well as information for policy-making and personal direction. It also provides a technical foundation.
