The Nigerian National Petroleum Company Limited (NNPCL) and Chevron Nigeria Limited have announced a significant oil discovery with the successful drilling of the Meji NW-1 well in the shallow offshore Niger Delta region.
In a statement released on Friday, the companies reported that drilling began on September 2, 2024, and reached a total depth of 8,983 feet, with operations concluding on October 2.
The well encountered approximately 690 feet of hydrocarbons within Miocene sands, extending the productive Meji field.
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This discovery represents a positive development for Nigeria, especially as companies like Shell, ExxonMobil, Total Energy, and Equinor shift their focus from the Niger Delta to less risky opportunities in Namibia and Guyana.
On Monday, NNPC Limited announced a deal with Chevron Nigeria Limited to convert five of their joint venture assets to comply with the Petroleum Industry Act (PIA).
According to Chief Corporate Communications Officer Olufemi Soneye, this agreement aims to significantly increase crude oil production, with both partners targeting 165,000 barrels of oil per day (bopd) by the end of 2024.
Soneye emphasized that this deal aligns with the provisions of the 2021 PIA, which facilitates the transition of assets from the Petroleum Profit Tax (PPT) to PIA terms.
Under the new regime, 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 said: “Nonetheless, an option of voluntary conversion is provided for holders of OPLs and OMLs (Operator, Licensees or Lessees) under the erstwhile Petroleum Profit Tax (PPT) regime. The PIA terms are generally perceived as more investor-friendly, compared to the erstwhile PPTA terms.
“During a brief ceremony held at the NNPC Towers on Monday, the two partners signed documents on the conversion of five OMLs into four PPLs and twenty-six PMLs, in line with the new PIA terms, marking a significant step towards increasing domestic gas supply and expanding global market presence.”
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