The Nigerian National Petroleum Company Limited (NNPCL) and 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. The well, spudded on September 2, 2024, reached a total depth of 8,983 feet, with operations concluding on October 2.
In a joint statement released on Friday, the companies revealed that the drilling encountered approximately 690 feet of hydrocarbons within Miocene sands, extending the productive Meji field. This discovery provides a boost to Nigeria’s oil sector, particularly as major players such as Shell, ExxonMobil, and TotalEnergies shift focus to other regions like Namibia and Guyana for less risky ventures.
Earlier this week, NNPCL also announced a key agreement with Chevron to convert five joint venture assets to terms under the Petroleum Industry Act (PIA). This transition is expected to significantly enhance crude oil production, with both companies targeting a production output of 165,000 barrels of oil per day (bopd) by the end of 2024.
Olufemi Soneye, NNPCL’s Chief Corporate Communications Officer, explained that the deal aligns with PIA 2021 provisions, transitioning assets from the former Petroleum Profit Tax (PPT) regime to more investor-friendly PIA terms. The conversion covers five Oil Mining Leases (OMLs), which have now been restructured into four Petroleum Prospecting Licenses (PPLs) and twenty-six Petroleum Mining Leases (PMLs).
This step marks a pivotal moment for Nigeria’s energy industry, with the focus on boosting domestic gas supply and expanding the country’s presence in global oil markets.
