NNPC, Chevron find oil in Meji NW-1 Well
CHIGOZIE AMADI
Nigeria’s national oil company (NNPC Limited) and Chevron Nigeria Limited Joint Venture (NNPC-CNL JV) has made a near-field discovery with the successful drilling of the Meji NW-1 well in Petroleum Mining Lease (“PML”) 49 within the shallow offshore area of the Western Niger Delta, which was recently converted to the PIA 2021 terms.
According to a statement by the General Manager, Policy Government and Public Affairs, CNL, Olusoga Oduselu, the Well was spud on September 2, 2024, and reached a total depth of 8,983ft measured depth on September 13, 2024. The Well has encountered about 690ft of hydrocarbons within Miocene sands and successfully appraises an extension of the Meji field. Well operations were completed, and the rig left location on October 2, 2024.
This accomplishment is consistent with CNL’s intention to continue developing and growing its Nigerian resources, including the onshore and shallow water areas and 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 NNPC-CNL JV will continue to collaborate with the Nigerian government and other stakeholders to support the development of the Nigerian oil and gas industry and the Nigerian economy in general.
Chevron Nigeria operates PML 49 alongside NNPC in a joint venture. The US firm holds a 40% stake in the block and NNPC owns the rest. It was previously known as OML 90 but was converted recently in line with the new Petroleum Industry Act of 2021.
According to data from S&P Global Commodity Insights, production from the Meji field peaked at 51,000 b/d in 2005 but has since fallen to some 17,000 boe/d, most of it crude oil.
Discoveries were first made on the license in 1965, with production starting four years later.
Staying put
Chevron did not offer a timeline for production at Meji NW-1 or any detail on how much the asset could produce. The company declined to comment further.
Nevertheless, the find comes as a boost for Nigerian officials and illustrates the contrast with Chevron’s peers, who are leaving the Niger Delta in their droves in favor of deep-water opportunities in Nigeria, less risky jurisdictions and frontiers like Namibia and Guyana.
Eni has already quit the Nigerian onshore and shallow water, selling its business to local firm Oando.
Meanwhile, Shell has agreed to sell its onshore business to the Renaissance consortium of five mostly local companies, ExxonMobil has signed a deal with Seplat and Equinor and TotalEnergies are selling assets to Nigeria-focused Chappal Energies.
The transactions have been met with sluggish approvals and, in some cases, official opposition.
Chevron has sought to reaffirm its commitment to Nigeria’s oil sector, however, winning praise from Nigeria’s government and NNPC boss Mele Kyari.
On Sept. 9, the NNPC said Chevron was targeting a “significant” production boost to 165,000 b/d from five of its key licenses by the end of 2024 after converting the blocks to meet the terms of the PIA.
In January the US oil giant acquired a stake in Oil Prospecting License 215 — an exploration block — in the offshore Niger Delta.
Chevron is thought to be Nigeria’s third largest producer, with stakes in 62 assets according to Commodity Insights estimates, including the prolific 90,000 b/d Agbami field and Escravos oil projects.
Nigerian officials have been battling to stem the tide of IOC departures in recent months, having seen oil output fall from a peak of 2.45 million b/d in 2005 to 1.46 million b/d today, according to the Platts OPEC Survey from S&P Global Commodity Insights, thanks to underinvestment, a dearth of exploration activity, field maturation and theft and sabotage of oil installations and pipelines.
The Niger Delta has played host to spills and security issues in recent years, with as much as 300,000 b/d of crude still going missing, Nigerian lawmakers said in April.
Additional report from Oilprice.com
