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.
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.
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.
Leave a comment