ExxonMobil Discovers 1 Billion Barrels Of Oil In Owowo Field, Offshore Nigeria

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ExxonMobil, the largest publicly traded international oil and gas company said it has discovered oil in Owowo field offshore Nigeria.

In a statement released by ExxonMobil, the discovery was described as a ‘significant discovery’ with a potential recoverable resource of between 500 million and 1 billion barrels of oil.

The Owowo-3 well, which was spud on Sept. 23, encountered about 460 feet (140 meters) of oil-bearing sandstone reservoir. Owowo-3 extends the resource discovered by the Owowo-2 well, which encountered about 515 feet (157 meters) of oil-bearing sandstone reservoir.

“We are encouraged by the results and will work with our partners and the government on future development plans,” said Stephen M. Greenlee, president of ExxonMobil Exploration Company.

Owowo-3 was safely drilled to 10,410 feet (3,173 meters) in 1,890 feet (576 meters) of water. The Owowo field spans portions of the contract areas of Oil Prospecting License 223 (OPL 223) and Oil Mining License 139 (OML 139). The well was drilled by ExxonMobil affiliate Esso Exploration and Production Nigeria (Deepwater Ventures) Limited and proved additional resource in deeper reservoirs.

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

The discovery of oil in Owowo oil field also shows that the company might be focusing more in the upstream sector going forward.

It would be recalled that ExxoMobil announced last week that it will be selling off its 60% stake in Mobil Nigeria, a downstream oil company to Nipco PLC. ExxonMobil said the move is not to leave Nigeria for good but a strategic imperative which it has been doing across various markets.

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