KEY POINTS
- Chevron Nigeria announces a significant oil discovery in the shallow offshore region of the Western Niger Delta.
- The discovery boosts Nigeria’s oil reserves, presenting new potential for energy production.
- Chevron plans further appraisals to evaluate the commercial viability of the discovery.
Chevron Nigeria Limited recently declared the discovery of oil in the shallow offshore region of the Western Niger Delta which is a boost to the energy sector in Nigeria. This new discovery in the Niger Delta area is believed to increase the country’s proven oil stock and could go a long way in adding to Nigeria’s oil production capability.
A major discovery in shallow water zone
Chevron’s discovery is in the shallow water of the western Niger Delta which is a proven hydrocarbon province. The first occasions of volumetric and qualitative appraisal completed by the company suggest that the reservoir contains forthcoming volumes of oil thus sparking new development that could further boost Nigeria position in the over world oil market.
Chevron has been buying and operating in Nigeria since before the oil boom, with production experience that spans onshore and offshore the Niger Delta.
Oil Review Africa has reported that Chevron has said it will conduct more studies to determine the extent and quality of the reservoir. By doing so the company will be in a position to know the implications of the discovery with regards to the commercial aspects and to plan on future development.
Increase in Nigeria’s oil reserve and production capacity
This latest discovery comes at a time when Nigeria’s oil industry is under pressure because of falling oil prices and disruptions in operations.
With reserves like this one, discovered and added to reserves, Nigeria could have more options for generating revenues and thus have more powerhouse in the global market. Nigeria remains an oil-producing country and new discoveries are crucial to its development as one of Africa’s leading oil producers.
This discovery by Chevron if it results in additional proved reserves in Nigeria maybe a plus for both employment opportunities and infrastructural growth in the Western Niger Delta. New projects that may be linked with the discovery could lead to employment opening, boosting of the local economy and thus development of the Niger Delta area.
Proposed subsequent valuations and expansion
Chevron Nigeria has agreed to undertake more appraisal drilling in order to determine the extent of the discovery. This appraisal phase will assist in the definition of the oil field, the assessment of the requirements for the development of the field and the environmental impact. If Chevron succeeds in its discovery, it will open up the Nigerian offshore for more investment, and other international oil companies may be encouraged to invest in Nigeria’s offshore regions.
Energy sector is still very important for the Nigerian economy and such findings prove that oil search in the area still holds a lot of potential. Although the shift towards renewable energy is a worldwide trend, Nigeria will probably remain an oil exporter for many years to come
