Chevron Nigeria Limited has announced the discovery of a new oil field with an estimated production capacity of 17,000 barrels of oil per day.
This finding occurs as international oil companies are increasingly shifting their investments from onshore to offshore operations, reflecting changing dynamics in the industry.
According to a report by S&P Global Commodity on Friday, the “near-field discovery” was made by the Meji NW-1 spud in Petroleum Mining Lease 49.
The newly discovered oil field is situated in the shallow offshore region of the Western Niger Delta, highlighting Chevron’s ongoing exploration efforts in this area amidst the broader industry trend of moving investments offshore.
The report did not provide a timeline for when production will begin at Meji NW-1 or specific details on the potential production capacity of the asset.
Chevron reported that the well spud reached a depth of 8,983 feet, encountering 690 feet of hydrocarbons within Miocene sands. Well operations were successfully completed earlier this month.
The report read, “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.”
The discovery of the new oil field comes at a crucial time for Nigeria’s oil sector, which has faced declining production due to sabotage, theft, and aging infrastructure.
According to S&P Global Commodity Insights, Chevron holds a 40% interest in Oil Mining License 49, in partnership with NNPC.
Production from the Meji field, which peaked at 51,000 barrels per day in 2005, has now decreased to about 17,000 barrels of oil equivalent per day, predominantly crude oil.
The license first saw discoveries in 1965, with production commencing four years later.
The report did not provide a timeline for when production will begin at Meji NW-1 or specific details on the potential production capacity of the asset.
