Economy

NNPC-Chevron Joint Venture Makes New Discovery Amid Declining Oil Exploration in Nigeria

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The NNPC Limited – Chevron Nigeria Limited Joint Venture (NNPC-CNL JV) has achieved a significant milestone with the successful drilling of the Meji NW-1 well in Petroleum Mining Lease (PML) 49, located in the shallow offshore area of the Western Niger Delta. The well, drilled under the PIA 2021 terms, was spudded on September 2, 2024, and reached a total depth of 8,983 feet on September 13, 2024. It encountered approximately 690 feet of hydrocarbons within Miocene sands, extending the existing Meji field. The rig left the location on October 2, 2024, after operations were completed.

According to Olusoga Oduselu, General Manager of Policy Government and Public Affairs, this discovery aligns with Chevron’s global strategy to expand its resources, particularly in onshore and shallow water areas, ensuring shorter development cycles for its producing assets. Oduselu added that the NNPC-CNL JV remains committed to working with the Nigerian government and other stakeholders to support the development of Nigeria’s oil and gas industry and, consequently, the economy.

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However, recent data from the Organisation of Petroleum Exporting Countries (OPEC) reveals a decline in Nigeria’s oil exploration activities. The latest Monthly Oil Market Report for October 2024 shows that oil exploration decreased by 6.7 percent year-on-year (YoY) in September 2024, with the number of rigs deployed dropping from 15 in September 2023 to 14 in the same period this year. On a month-on-month (MoM) basis, the figure remained stable at 14 rigs in both August and September 2024.

At the recently concluded African Oil Week (AOW) in Cape Town, South Africa, the Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Engr. Gbenga Komolafe, reaffirmed Nigeria’s efforts to complete its 2024 Nigerian License Round. Komolafe highlighted Nigeria’s commitment to transparency, regulatory efficiency, and creating a favorable business environment for investors. He also outlined the strategic blocks available for licensing, emphasizing the country’s vast untapped potential in hydrocarbons.

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Despite the recent near-field discovery by the NNPC-CNL JV, the overall reduction in exploration activity highlights the challenges facing Nigeria’s petroleum industry, particularly in attracting investment for upstream operations. The Nigerian government’s commitment to improving regulatory conditions and offering new opportunities for investment will be critical in reversing the current downward trend and unlocking the nation’s full potential in the global energy market.

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31 Comments

  • I think its time we reconsider our reliance on oil and focus on sustainable energy sources for the future. What do you guys think?

  • I think its time we shift our focus away from oil exploration and invest more in renewable energy sources. #SustainabilityMatters

  • This discovery could revive Nigerias oil industry! Lets hope for sustainable development and ethical practices. Great news!

  • I think its time we shift away from oil exploration in Nigeria and focus on renewable energy sources. Lets protect the environment!

    • Why should we abandon a valuable resource like oil? We can pursue renewable energy alongside it.

  • I think its time we reconsider our reliance on oil and focus on sustainable energy sources. Lets think long-term!

  • I think Nigeria should focus more on renewable energy sources instead of relying solely on oil exploration. Lets prioritize sustainability!

  • I dont understand why were still investing in oil exploration when renewable energy is the future. Lets focus on sustainable solutions instead.

  • I dont get the hype about oil exploration. We should focus on renewable energy sources instead of depleting our natural resources.

  • I dont buy into the hype. Oil exploration is outdated. We should focus on renewable energy sources for a sustainable future.

  • I think its time we shift away from oil exploration altogether and focus on sustainable energy sources. Lets prioritize the environment over profit.

    • Sorry, but oil still plays a crucial role in our economy. We need a balanced approach.

  • I dont get the hype. Oil exploration is so last century. Lets focus on renewable energy and save the planet!

  • I dont understand the hype around oil discovery in Nigeria. Shouldnt we focus on sustainable energy sources instead?

  • I dont understand why were still investing in oil when we should be focusing on renewable energy sources. Lets protect the environment!

  • I think its time to shift focus from oil exploration to sustainable energy sources for a better future. Lets prioritize the environment over profits.

  • I dont buy into the hype. Who says oil exploration is the answer? Lets focus on sustainable energy sources instead.

  • I think this new oil discovery is great news for Nigeria! Its a boost for the economy, despite environmental concerns.

  • Why should we celebrate new oil discoveries when we should be focusing on sustainable energy sources instead? Lets think long-term!

  • I dont understand why people are still investing in oil exploration when we should be focusing on renewable energy sources.

  • I dont get why were still so reliant on oil exploration. Lets focus on renewable energy sources instead!

  • This new oil discovery is great news for Nigeria, but shouldnt we be focusing more on sustainable energy sources instead?

  • I dont buy into the hype of new oil discoveries. We need to focus on sustainable energy sources instead.

  • I wonder if this new oil discovery will actually benefit the local communities or just line the pockets of big corporations. #FollowTheMoney

  • I dont understand why we keep investing in oil exploration when we should focus more on renewable energy sources.

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