Chevron Nigeria Limited, a subsidiary of Chevron Corporation, has announced the discovery of a new oil field estimated to hold 17,000 barrels of oil per day.
This discovery comes amidst plans by international oil companies to divest their investment from onshore to offshore.
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 block is located in the shallow offshore area of the Western Niger Delta.
It added that the spud reached a depth of 8,983 feet and encountered 690 feet of hydrocarbons within Miocene sands, and well operations were completed early 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 field comes at a time when Nigeria is facing challenges in its oil sector. The country’s oil production has been declining in recent years due to a variety of factors, including sabotage, theft, and ageing infrastructure.
Data from S&P Global Commodity Insights showed Chevron holds a 40 per cent interest in Oil Mining License 49 alongside NNPC in a joint venture.
Further findings showed production from the Meji field peaked at 51,000 bpd in 2005, but has since fallen to some 17,000 boepd, most of it crude oil.
Discoveries were first made on the license in 1965, with production starting four years later.
However, the report did not offer a timeline for production at Meji NW-1 or any detail on how much the asset could produce.
The new field is expected to help offset some of these declines and boost Nigeria’s oil production. It is also expected to create jobs and generate revenue for the local communities where it is located.
Eni has already quit the Nigerian onshore and shallow water, selling its business to local firm Oando.