There are countries which, although they have billions of barrels of oil under their soil or in their waters, have serious difficulties in ensuring effective management. In many of these cases, oil goes from being a blessing to a nightmare, a source of corruption, conflict and internal strife. This is the case of Nigeria, where it is estimated that every year millions of barrels of crude oil are “lost” or “disappeared” due to mismanagement and sabotage. Nigeria is the country with the second largest crude oil reserves in Africa. Even so, companies continue to invest in exploration while waiting for something to change. A good example is the discovery of crude oil announced a few days ago by Chevron.
Chevron, in collaboration with the Nigerian National Petroleum Company (NNPC), announced the discovery of a new oil field in the Niger Deltaas reported by the American company on October 18, 2024. This discovery was made in the PML 49 operating block, located in the shallow waters west of the Delta, and extends the Meji production field.
The drilling reached a depth of 2,738 meters, finding 690 feet of hydrocarbons in the Miocene sands. Operations ended on October 2, according to Chevron. This discovery reinforces the company’s overall strategy to extend the life of its productive assets and accelerate development cycles.
Miocene sands are geological formations that appeared in the Miocene, between 23 and 5 million years ago. These formations are primarily composed of sediments, sands, and other materials deposited in ancient marine and terrestrial environments. Over millions of years, these sediments were covered with additional layers, generating the pressure and temperature conditions necessary for the transformation of organic matter into hydrocarbons, such as oil and natural gas.
Miocene sands are important in the petroleum industry because many of them contain large accumulations of petroleum. The organic matter trapped in these formations during their deposition was transformed into hydrocarbons under specific conditions of temperature and pressure. For this reason, Miocene formations are generally targets for oil exploration in various regions of the world, notably in the Niger Delta, where Chevron made its recent discovery. The presence of these sands indicates a geological environment favorable to the production and storage of oil.
Hope for the Meji field
The Meji oil field is located in the Niger Delta region of Nigeria, in a shallow water area. This field began producing oil in 1969, after significant reserves were discovered in the 1960s.. Operated by Chevron in conjunction with the Nigerian National Petroleum Corporation, Meji has been an important source of crude oil for Nigeria, with its production reaching a peak of 51,000 barrels per day in 2005. However, its production has declined over the years due to natural phenomena. depletion of the deposit, which currently stands at around 17,000 barrels of oil equivalent per day. Chevron’s discovery in the region aims to revitalize production, extending the useful life of the field.
This observation also constitutes a stimulus for the Nigerian authorities, in a context where other international oil companies have chosen to leave the region, in search of opportunities in deep waters or in other countries. Chevron, on the other hand, has reaffirmed its commitment to Nigeria, with the country’s government welcoming the company’s decision to increase production in several of its key blocks by the end of 2024.
Chevron’s discovery comes at a crucial time for Nigeria, Africa’s largest oil producer. As explained by the International Energy Agency (IEA), supply in Nigeria was reduced by more than 50,000 barrels per day to 1.31 million barrels per day in September, with lower loadings and Refining operations lower than expected at the Dangote refinery. It is worth remembering that in 2005 it reached a peak of 2.45 million barrels per day. However, production has declined due to lack of investment, aging fields and security concerns, such as oil theft and sabotage of facilities and pipelines.
Nigeria has proven reserves of 36.9 billion barrels of oilwhich places it among the 10 countries with the most reserves in the world. The country’s economy depends heavily on oil revenues, which account for around 90% of its exports and a significant share of GDP. However, this dependence has also made Nigeria vulnerable to fluctuations in crude oil prices and internal instability in the Niger Delta, where many spills and conflicts related to resource extraction have occurred.
With a population of over 200 million, Nigeria is the most populous country in Africa and the continent’s largest economy. However, it faces significant challenges, such as widespread poverty, youth unemployment and corruption, meaning that revenues generated by the oil sector do not always translate into improvements for the entire population. population.
