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.
This significant discovery comes at a time when international oil companies are shifting their investments from onshore operations to offshore projects.
According to a report from S&P Global Commodity Insights on Friday, the “near-field discovery” was made by the Meji NW-1 spud, located within Petroleum Mining Lease 49 in the shallow offshore region of the Western Niger Delta.
The well, which reached a depth of 8,983 feet, encountered 690 feet of hydrocarbons within Miocene sands. Well operations were completed earlier this month, marking a key development for Chevron in the region.
The report stated, “This accomplishment is consistent with Chevron Nigeria Limited’s intention to continue developing and growing its Nigerian resources, including the onshore and shallow water areas.
It 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.”
This discovery is particularly timely, as Nigeria has been grappling with declining oil production due to sabotage, theft, and ageing infrastructure.
Chevron, which holds a 40% stake in Oil Mining Lease 49 in partnership with NNPC, has faced decreasing production from the Meji field, where output peaked at 51,000 barrels per day (bpd) in 2005 but has since fallen to around 17,000 barrels of oil equivalent per day (boepd), mostly crude oil.
Production at Meji began in 1969 following the first discovery on the license in 1965. However, no timeline has been provided for when production from the Meji NW-1 well will commence, nor has there been any indication of its long-term production potential.
The discovery is expected to help offset the country’s production declines, while also creating job opportunities and generating revenue for the surrounding communities.
In a related development, Eni has already exited Nigeria’s onshore and shallow water sector, selling its assets to local firm Oando.
