ChevronTexaco Makes Deepwater Gas Discovery Offshore Nigeria

ChevronTexaco

ChevronTexaco's Nigeria affiliate, Texaco Nigeria Outer Shelf Limited (TNOS), confirmed its deepwater Nigeria OPL 218 Nnwa gas discovery following completion of the Nnwa-2 appraisal well. The well, which follows the 1999 Nnwa-1 discovery well, was drilled by OPL 218 block operator, Statoil Nigeria Limited, on behalf of the Nigerian National Petroleum Corp. (NNPC).

Nnwa-2 drilling operations commenced in July 2002 with the Transocean Sedco Energy drilling rig in a water depth of 1,191 meters (3,907 feet) and reached a final depth of 4,984 meters (16,350 feet). Nnwa-2 is located 180 kilometers (112 miles) southwest of Port Harcourt, 6.5 kilometers (4 miles) northwest of the OPL 218 Nnwa-1 discovery well and 10.4 km (6.5 miles) northwest of the OPL 219 Doro-1X well.

The results of Nnwa-2 indicate continuity of the main gas reservoir intervals across the large Nnwa structure, extending into the adjacent offshore Nigeria block OPL 219. Following a successful production test the Nnwa-2 was plugged and suspended.

The OPL 218 and OPL 219 license participants, with Statoil and Shell as respective block operators, signed a Memorandum of Understanding (MOU) with NNPC and the Federal Government of Nigeria in June 2002 to conduct a feasibility study for a possible joint development of the Nnwa/Doro field using a Floating Liquefied Natural Gas production facility concept. This MOU study, being led by Statoil as Project Manager, is planned to reach a conclusion by late-2003. Additional appraisal work will be needed on the license blocks to further characterize the large Nnwa/Doro field.

"Our continued exploration successes in Nigeria's deepwater are welcome additions to ChevronTexaco's West African portfolio," said George Kirkland, president of ChevronTexaco Overseas Petroleum.

Adding his comments, Jay Pryor, managing director of TNOS and ChevronTexaco's Nigeria/Mid-Africa strategic business unit said, "We are pleased that drilling results from the partnership's exploration program in OPL 218 have confirmed a significant quantity of hydrocarbons. In the interests of NNPC and the partners, Texaco Nigeria Outer Shelf Limited is actively supporting the operator's efforts to ascertain appropriate development of the Nnwa structure."

ChevronTexaco holds a 46.15 percent contractor equity in OPL 218, with the operator Statoil holding the remaining 53.85 percent interest. In addition to OPL 218, the affiliate companies of ChevronTexaco Corp. in Nigeria hold significant deepwater participating interests in the following concessions: OPLs 213, 214, 215, 216, 217, 222, 250 and 318.


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