The Nigerian National Petroleum Company Limited (NNPCL) and its joint venture partner, Chevron Nigeria Limited, have announced a significant oil discovery following the successful drilling of the Meji NW-1 well in the shallow waters of the Niger Delta region. The discovery, which was made on September 2, 2024, has provided a much-needed boost to Nigeria’s oil industry.
In a joint statement released on Friday, the two companies confirmed that the well reached a total depth of 8,983 feet, and drilling operations were completed by October 2. The well encountered approximately 690 feet of hydrocarbons in Miocene sands, expanding the productive zone of the already successful Meji field.
This discovery is seen as a significant achievement for Nigeria’s oil sector, especially as some of Chevron’s global peers, including Shell, ExxonMobil, and TotalEnergies, are scaling back operations in the Niger Delta in favor of exploring less risky prospects in Namibia and Guyana.
In addition to this discovery, NNPC Limited also revealed a major agreement with Chevron on Monday. The two partners have signed a deal to convert five of their joint venture oil mining leases (OMLs) into the new Petroleum Industry Act (PIA) terms. This transition is expected to significantly boost crude oil production, with a target of reaching 165,000 barrels per day (bopd) by the end of 2024.
Olufemi Soneye, Chief Corporate Communications Officer for NNPCL, explained that the PIA 2021 provides a more investor-friendly framework, replacing the previous Petroleum Profit Tax (PPT) regime. Under the new law, existing Oil Prospecting Licenses (OPLs) and OMLs will automatically convert to Petroleum Prospecting Licenses (PPLs) and Petroleum Mining Leases (PMLs) upon expiration, or companies can opt for voluntary conversion before that.
During a signing ceremony at NNPC Towers in Abuja, the companies finalized the conversion of five OMLs into four PPLs and 26 PMLs. This move is seen as a step forward in increasing Nigeria’s domestic gas supply and strengthening its presence in the global energy market.
The latest oil discovery and agreement under the PIA terms are expected to play a vital role in bolstering Nigeria’s energy sector and attracting more investment despite global shifts away from traditional oil fields.
