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Chevron Discovers New 17,000 bpd Oilfield in Nigeria

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Chevron Nigeria Limited (CNL), a subsidiary of Chevron Corporation, has announced a significant oil discovery in the Niger Delta, a move expected to bolster Nigeria’s struggling oil production sector. The newly discovered oil field, estimated to produce 17,000 barrels of oil per day (bpd), is located in the shallow offshore area of the Western Niger Delta.

Chevron described the new find as a “near-field discovery” made by the Meji NW-1 well, spud in Petroleum Mining Lease 49. Jim Swartz, Chairman and Managing Director of Chevron, confirmed the discovery in a statement issued on Friday by Olusoga Oduselu, General Manager of Policy, Government, and Public Affairs for Chevron Nigeria.

Oduselu explained that the Meji NW-1 well was spud on September 2, 2024, and reached a total depth of 8,983 feet by September 13, 2024. “The well encountered approximately 690 feet of hydrocarbons within Miocene sands and appraised an extension of the Meji field,” Oduselu said. He added that the well operations were completed, with the rig departing the location on October 2.

The discovery aligns with Chevron’s commitment to strengthening its resource base in Nigeria. According to Oduselu, “This accomplishment is consistent with CNL’s intention to continue developing and growing its Nigerian resources, including onshore and shallow water areas.” He further stated that “this 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.”

Chevron’s discovery comes at a critical time for Nigeria’s oil sector, which has faced significant production challenges in recent years due to sabotage, oil theft, and deteriorating infrastructure. The country’s oil output has been steadily declining, and the discovery of new fields like Meji NW-1 is a welcome development.

Data from S&P Global Commodity Insights indicates that Chevron holds a 40% interest in Oil Mining License (OML) 49, working in a joint venture with the Nigerian National Petroleum Corporation (NNPC). While production from the Meji field once peaked at 51,000 bpd in 2005, it had decreased to around 17,000 bpd before this recent discovery.

The Meji field has been a cornerstone of Chevron’s operations in Nigeria since its discovery in 1965, with production beginning four years later. However, Chevron has not yet provided a timeline for production from the new Meji NW-1 well or specific details on its output capacity.

This new discovery is seen as a positive boost for Nigeria’s oil industry, especially as several international oil companies have been shifting their focus from onshore operations in the Niger Delta to deep-water projects or exiting the region altogether. For instance, Eni recently sold its onshore and shallow water assets to the Nigerian company Oando, and other major players like Shell, TotalEnergies, and ExxonMobil have been divesting their Nigerian onshore holdings in favour of lower-risk regions like Namibia and Guyana.

The new oilfield is expected to contribute to reversing Nigeria’s declining oil production, create jobs, and generate revenue for local communities. Chevron’s ongoing collaboration with the Nigerian government and stakeholders in the oil and gas sector is expected to help sustain economic growth and development.

“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,” Oduselu concluded.

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