New Oil Field Discovery in Nigeria Boosts Hopes for Revitalized Industry
Chevron Nigeria Limited, a subsidiary of Chevron Corporation, has made a significant discovery in the country’s oil sector, identifying a new oil field with an estimated 17,000 barrels of oil per day. This development comes at a time when Nigeria is grappling with declining oil production due to sabotage, theft, and outdated infrastructure.
The discovery was made by the Meji NW-1 spud in Petroleum Mining Lease 49, located in the shallow offshore area of the Western Niger Delta. According to a report by S&P Global Commodity, the "near-field discovery" reached a depth of 8,983 feet, encountering 690 feet of hydrocarbons within Miocene sands. Well operations were completed early this month.
Chevron Nigeria Limited sees this discovery as a significant step towards achieving its goals of developing and growing Nigerian resources, including onshore and shallow water areas. The company’s global exploration strategy focuses on finding new resources that extend the life of existing assets, reducing development cycle times.
Nigeria’s oil production has been on the decline in recent years, with the country facing numerous challenges in its oil sector. However, this new discovery is expected to help offset some of these declines and give the industry a much-needed boost. Additionally, it is anticipated to create jobs and generate revenue for local communities where the field is located.
Chevron holds a 40% interest in Oil Mining License 49, in partnership with NNPC, a joint venture that has been in operation since the 1960s. The Meji field, discovered in 1965, had initially reached a peak production of 51,000 barrels per day in 2005, but has since decreased to 17,000 barrels per day. While the report did not provide a timeline for production at Meji NW-1 or details on the asset’s potential output, the discovery is seen as a positive development for the industry.
This breakthrough also comes at a time when international oil companies are reassessing their investments in Nigeria. Eni, for instance, has already exited the country’s onshore and shallow water operations, selling its business to local firm Oando. Nevertheless, Chevron’s latest discovery demonstrates the company’s commitment to the Nigerian market and its efforts to revitalize the country’s oil industry.
