The Nigerian National Petroleum Company Limited (NNPCL) and its joint venture partner, Chevron Nigeria Limited, have made a significant near-field oil discovery through the successful drilling of the Meji NW-1 well in the shallow waters offshore the Niger Delta.
In a statement released on Friday, both companies announced that the well, which was spud on September 2, 2024, reached a total depth of 8,983 feet, with drilling operations concluding on October 2. The discovery encountered approximately 690 feet of hydrocarbons within Miocene sands, extending the productive area of the Meji field.
This new oil discovery is a positive development for Nigeria, especially as several of Chevron’s competitors, including Shell, ExxonMobil, TotalEnergies, and Equinor, have shifted their focus from the Niger Delta to pursue less risky opportunities in Namibia and Guyana.
Earlier in the week, NNPC Limited announced the signing of a deal with Chevron Nigeria Ltd. for the conversion of five joint venture assets into terms under the Petroleum Industry Act (PIA). According to NNPCL’s Chief Corporate Communications Officer, Olufemi Soneye, the agreement is expected to significantly boost oil production, with a target of achieving 165,000 barrels of oil per day (bopd) by the end of 2024.
Soneye noted that the deal aligns with the PIA 2021, which transitions existing assets from the Petroleum Profit Tax (PPT) regime to the new PIA terms. Under the PIA, all existing Oil Prospecting Licenses (OPLs) and Oil Mining Leases (OMLs) will automatically convert to Petroleum Prospecting Licenses (PPLs) and Petroleum Mining Leases (PMLs) upon expiration.
He added that operators under the PPT regime have the option for voluntary conversion, with the PIA terms generally viewed as more investor-friendly.
During a brief ceremony at the NNPC Towers on Monday, NNPC and Chevron signed documents converting five OMLs into four PPLs and 26 PMLs, marking a significant step towards increasing domestic gas supply and expanding Nigeria’s presence in global energy markets.