Chevron Nigeria has announced a significant new oil discovery in the Niger Delta, with an estimated production potential of up to 17,000 barrels per day. The discovery, located within the Meji NW-1 spud in Petroleum Mining Lease (PML) 49, represents a promising development for Nigeria’s oil sector, especially as the country seeks to revitalize its declining production levels.
According to a statement released by Chevron on October 18, this discovery was made in the shallow offshore zone of the Western Niger Delta. The well reached a drilling depth of 8,983 feet and encountered approximately 690 feet of hydrocarbons within Miocene sands. The discovery extends the current Meji field, a major contributor to Nigeria’s oil output, which has seen a decline in recent years.
The new find is described as a “near-field” discovery, meaning it is located close to existing production facilities, making it easier to integrate into current operations. Well operations were finalized on October 2, and the company expressed optimism about the potential of this new resource.
“This accomplishment is consistent with Chevron’s commitment to further develop and grow its Nigerian resources, including onshore and shallow water areas,” the statement noted. Chevron also emphasized that the discovery aligns with its global exploration strategy, which focuses on identifying new resources to extend the lifespan of existing assets and achieve faster production cycles.
Chevron operates PML 49 in a joint venture with the Nigerian National Petroleum Company (NNPC). Chevron holds a 40% stake in the block, while NNPC retains the remaining 60%. The block, formerly known as Oil Mining Lease (OML) 90, was recently reclassified under the provisions of Nigeria’s Petroleum Industry Act (PIA) of 2021, part of a broader reform to attract more investment in the country’s energy sector.
The Meji field, where the discovery was made, has a long history in Nigeria’s oil landscape. Production from the field began in 1969, following its initial discovery in 1965. At its peak, the field produced 51,000 barrels per day in 2005, according to data from S&P Global Commodity Insights. However, production has since dwindled to around 17,000 barrels of oil equivalent per day, primarily crude oil. The new discovery offers the potential to boost output and contribute to stabilizing Nigeria’s overall production levels.
This development is particularly significant for Nigeria as the country grapples with declining crude oil production. Nigeria’s crude output has faced multiple challenges in recent years, including operational inefficiencies, underinvestment, and the exit of several multinational oil companies from onshore operations. Oil majors such as Shell, ExxonMobil, ENI, and AGIP have either completed or announced the sale of their onshore oil and gas assets, a trend that has raised concerns about Nigeria’s ability to meet its long-term production targets.
President Bola Tinubu has set an ambitious goal to raise Nigeria’s crude oil production to 4 million barrels per day by 2030. Achieving this target will require increased investment in exploration and development, as well as more favorable regulatory frameworks to attract both local and foreign players.
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