Chevron Nigeria Limited (CNL) and the Nigerian National Petroleum Company (NNPC) joint venture has announced a significant oil discovery in the Niger Delta. The discovery was made through the successful drilling of the Meji NW-1 well in Petroleum Mining Lease 49 (PML 49), located in the shallow offshore area of the Western Niger Delta.
The Meji NW-1 spud reached a depth of 8,983 feet and encountered 690 feet of hydrocarbons within Miocene sands, effectively extending the producing Meji field. This ‘near-field discovery’ is expected to boost Nigeria’s ailing oil production, which has been declining due to various challenges including sabotage, theft, and ageing infrastructure.
Chevron operates PML 49 alongside NNPC in a joint venture, with Chevron holding a 40% stake and NNPC owning the remaining 60%. The block was previously known as OML 90 but was converted recently in line with the new Petroleum Industry Act of 2021.
The new field is estimated to produce 17,000 barrels of oil per day (bpd), which is a welcome development for Nigeria’s economy. This discovery comes at a time when many international oil companies (IOCs) are exiting the Niger Delta in favor of deep-water opportunities and less risky jurisdictions.
Despite the challenges in the oil sector, Chevron has reaffirmed its commitment to Nigeria’s oil industry. The company is targeting a significant production boost to 165,000 b/d from five of its key licenses by the end of 2024.
The discovery is also seen as a positive step for local communities, as it is expected to create jobs and generate revenue. However, Chevron did not provide a timeline for production at Meji NW-1 or details on the potential output of the new asset.
