GOOD NEWS! 1 billion barrels of oil discovered in Bayelsa by ExxonMobil

– Exxon Mobil has reported a significant discovery in Bayelsa state 

– The oil giant has discovered a potential recoverable resource of between 500 million and one billion barrels

– The discovery is on Owowo field, offshore Nigeria

ExxonMobil has announced the discovery of about 1 billion barrels of crude oil in a Nigerian offshore oilfield.

Nigeria’s minister of state for petroleum, Dr Ibe Kachikwu should be happy about this news

The American oil giant made the announcement via an email to journalists yesterday, October 27.

Stephen M. Greenlee, president of Exxon Mobil Exploration Company described the development as “a significant discovery with a potential recoverable resource of between 500 million and one billion barrels”.

“We are encouraged by the results and will work with our partners and the government on future development plans,” he added.

The discovery came after the firm’s engineers carried out a drilling exercise at Owowo-3 oil well, several miles off the coast of Bayelsa State, southern Nigeria.

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According to Greenlee’s statement, the exercise took place on Friday, September 23 where the engineers encountered about 460 feet (140 metres) of oil-bearing sandstone reservoir.

The latest discovery followed an earlier find at Owowo-2 well, which yielded about 515 feet (157 metres) of oil-bearing sandstone reservoir.

The firm however warned that the discovery and other future activities around it are subject to revisions.

The Owowo field spans portions of the contract areas of Oil Prospecting Licence 223 and Oil Mining Licence 139. The well was drilled by ExxonMobil affiliate, Esso Exploration and Production Nigeria (Deepwater Ventures) Limited, and proved additional resource in deeper reservoirs.

But the company warned that the discovery and other future activities around it are subject to revisions.

“Statements of future events or conditions in this release are forward-looking statements.

“Actual future results, including project plans and schedules and resource recoveries could differ materially due to changes in market conditions affecting the oil and gas industry or long-term oil and gas price levels; political or regulatory developments; reservoir performance; the outcome of future exploration and development efforts,” the firm said.

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Exxon Mobil holds 27% interest and is the operator for OPL 223 and OML 139. Joint venture partners include Chevron Nigeria Deepwater G Limited (27% interest), Total E&P Nigeria Limited (18% interest), Nexen Petroleum Deepwater Nigeria Limited (18% interest), and the Nigeria Petroleum Development Company Limited (10% interest).

Meanwhile, Nigeria’s minister of state for petroleum, Dr Ibe Kachikwu has said he believes that through the oil and gas sector of the economy, the country has hope and could resolve its problems.

“The only thing that we must hold high is commitment and collegiality in trying to fix things. I believe if the petroleum ministry works, the rest of the country will work,” Kachikwu stated at a recent event in Abuja.

 

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