Nigeria’s bid to increase foreign exchange earnings has received a significant boost with Chevron Nigeria Limited (CNL) announcing the discovery of a new oil well producing 17,000 barrels per day in the Niger Delta.
The well, named Meji NW-1, is located in Petroleum Mining Lease (PML) 49, co-owned by the Nigerian National Petroleum Company Limited (NNPC) and Chevron. The discovery, described as a “near-field discovery” by Chevron in a statement via S&P Global Commodity Insights, is located in the shallow waters of the Western Niger Delta.
Reaching a depth of 8,983 feet and encountering 690 feet of hydrocarbons within Miocene sands, the well operations were completed on October 2. This discovery extends the producing Meji field and aligns with Chevron’s commitment to expanding its Nigerian resources. It also fits the company’s global exploration strategy of finding new resources in established operating areas for quicker development cycles.
Chevron operates PML 49 in a joint venture with NNPC, holding 40% ownership of the block, which was formerly known as OML 90 but converted under the Petroleum Industry Act of 2021.
While Chevron has yet to provide a production timeline or specifics on potential output from Meji NW-1, the discovery is seen as a positive development for Nigeria, contrasting with other international oil companies that have been pulling out of the Niger Delta in favor of deep-water projects or exiting the country altogether.
Companies like Eni, Shell, ExxonMobil, and TotalEnergies have either sold or are in the process of selling their onshore and shallow-water assets to local firms, as these companies shift their focus to less risky areas like Namibia, Guyana, and offshore Nigeria.
Chevron, which is considered Nigeria’s third-largest oil producer with interests in 62 assets, is targeting a production boost of up to 165,000 bpd by the end of 2024 from five key licenses.
This comes as Nigeria battles declining oil output, underinvestment, field maturation, and oil theft, which have led to a significant drop in production from a peak of 2.45 million bpd in 2005 to 1.46 million bpd today.
Oil theft and sabotage of pipelines and installations continue to be major issues, costing Nigeria an estimated 300,000 to 400,000 bpd in lost production.
Get instant and latest news updates via Our WhatsApp Community, X/Twitter or Google News online channel.
