Chevron Discovers New Oil Well With 17,000 Barrels Per Day Asset

• Chevron Nigeria Limited has announced the discovery of a new oil field containing 17,000 barrels per day of crude oil
• The company disclosed this in a statement, saying that the new find underscores its commitment to the Nigerian oil sector
• Chevron’s discovery comes amid plans by several oil firms, including Shell, to divest their assets from the country

Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.

Chevron Nigeria Limited, a subsidiary of Chevron Corporation, has announced the discovery of a new oil field estimated to have 17,000 barrels per oil asset. This discovery is expected to boost Nigeria’s economy.

The company disclosed that the accomplishment aligns with its intention to continue developing and growing Nigeria’s oil resources, including the onshore and shallow waters.

Nigeria’s oil sector is facing declines

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It also added that the move supports its broader global exploration strategy to discover new resources that extend the life of producing assets in existing operating areas and deliver production with shorter development cycles.

According to reports, the new oil field will be introduced when Nigeria faces challenges in its oil sector. 

The country’s oil production has recently declined, with the Organisation of Petroleum Exporting Countries (OPEC) saying that Nigeria’s oil exploration declined by about 6 per cent in the last year.

OPEC said the country’s oil rigs rank among Africa's lowest, with 14 rigs from 15 recorded in 2022.

BusinessDay reports that data from S&P Global Commodity Insight revealed that Chevron holds a 40% interest in Oil Mining License (OML) 49 alongside the Nigerian National Petroleum Company Limited (NNPC) in a joint venture.

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Discovery to boost Nigeria’s economy

Checks showed that production from the Meji field plateaued at 51,000bpd in 2005 and has fallen to about 17,000bpd.

The company first made the discoveries on OML 49 in 1965, with production starting four years later.

The oil firm failed to offer a timeline for production at Meji NW-1 or provide any detail on the amount of assets available at the well.

Shell moves to sell oil assets

However, the discovery represents good news for the Nigerian economy. It highlights the contrasts with the firm’s peers that are divesting from the country, shutting down or selling their assets in the Niger Delta.

Reports say the new field is expected to help offset some of the declines, boost the country’s oil production, create jobs, and generate revenue for local communities.

Legit.ng earlier reported that Shell agreed to sell its onshore assets to the Renaissance consortium. The NUPRC declined the move, citing Renaissance’s lack of capacity.

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NUPRC unveils 31 oil blocks, invites foreign investors to buy

Legit.ng earlier reported that the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has asked foreign investors to take advantage of the opportunity of the ongoing licensing round in Nigeria to benefit from and contribute to Nigeria’s fast-growing oil and gas industry.

NUPRC's chief executive, Gbenga Komolafe, disclosed this during the Africa Oil Week Conference in Cape Town, South Africa.

He revealed that the licensing round features over 31 oil blocks, supported by a robust regulatory framework under the Petroleum Industry Act (PIA).

Source: Legit.ng