L-R; Dr. Andrew Ejayeseire and Mr. Kunle Adeyemo
Chevron Nigeria Limited is one of the International Oil Companies (IOC) making waves in Nigeria’s oil industry. It has continued its trend of major discovery in Nigeria’s oil industry despite numerous challenges confronting the industry in the country.
Recently, at a management session organized by Nigerian Association of Petroleum Explorationist (NAPE), during its 36th anniversary in Lagos, General Manager, Asset Development and Exploration of Chevron, Kunle Adeyemo, explained about the company’s role in Nigeria’s oil industry.
According to Adeyemo, Chevron sees the aspiration of Nigeria’s 40 million barrel reserves as attainable and realistic given that the Niger Delta has rich basin for oil and gas. These opportunities can be categorized into two main areas; exploration and discovery. Exploration to find more resources given the large amount of yet to be found prospect that has been established and to increase recovery from all the discovered fields. He added that there are categories of acquisition which other countries have used to guarantee energy supply.
Further on exploration and improving recovery from existing discovered assets, Adeyemo said that many of the fields in the Niger Delta are still being operated under primary and natural depletion while most of the wells are flowing against gravitational forces naturally unassisted by external forces.
Chevron views this as a great opportunity to increase reserve from its existing fields by deploying water fog expansively within operating areas. He made it known that in the Niger Delta where water injection is practiced, it is discovered that there is pressure maintenance rather than water fog. If Chevron’s basins that are more matured are compared with others, the recovery from secondary method water fog gas injection is very low compared to matured basins like of Gulf of Mexico and some areas in California. This is also an opportunity for the exploration company. In some other areas there are opportunities for gas injection in stranded asset that can be injected temporarily with good recovery from oil while gas can be reproduced at a latter phase in the field. It may not be prevalent but there are special cases where it might be an opportunity to increase reserve and recovery from existing asset.
Adeyemo spoke on artificial field deployment that Chevron has been active by expanding its gas network in the inland and offshore fields. In some cases, it has implemented technology that enables the company to gas lift to ensure that the well can produce for a longer period while increasing reserves. There are opportunities for chemical production which may be economical for significance purpose as a potential reserve.
Chevron as an exploration company, has been active despite relatively low exploration activities in Niger Delta basin. The latest discovery in the deep water is Owhowo which is OPL 223 and the company has been actively involved in it. Chevron ensures that relevant data is acquired and in future, in the nearby offshore fields, the company will also acquire seismic data to focus on deeper horizon for onshore fields. Basically, there are fields with prospects of 10000 to 15000 depth range which potentials have not been explored but Chevron is also actively involved to explore those fields.
Adeyemo was of the view that Nigeria needs innovative ideas to assess some of her reserves. The country should embark on favourable fiscal regime to promote exploration and development including FID. Funding is key for the oil industry. Chevron has joined in third party funding of some successful projects that are near completion. This gives an opportunity to grow reserves.
The Chevron Asset Development and Exploration Manager, emphasized that “There are lots of things around technology and we have heard about digitization. These are all things that we need to put together to ensure that enabling environment grow our reserves so that we can achieve our aspirations and our target.”