REUTERS UPDATE 1-Hydrocarbon found in Nigeria/Sao Tome well-Chevron [GBWLSCR]
(Updates with quote and background)
LAGOS, May 26 (Reuters) - The first well to be drilled in
the offshore area shared by Nigeria and Sao Tome has found
hydrocarbons, but it is premature to say if the discovery is
commercial, U.S. energy giant Chevron <CVX.N> said on Friday.
The Obo-1 well found a cumulative total of at least 150 feet
(45 m) of net hydrocarbons in multiple reservoirs which must now
be evaluated to determine the next stage of the appraisal
process, the company said in a statement.
"It is premature to determine whether or not the Chevron and
its co-venturers have made a commercial discovery," the
statement said.
Chevron holds 51 percent of the contract in block 1 in the
Nigeria/Sao Tome Joint Development Zone, while ExxonMobil
<XOM.N> has 40 percent and a local partner Dangote Energy Equity
Resources has the rest.
The results of this well have been eagerly awaited because
it is the first to be drilled in the deep water area which is
thought to contain billions of barrels of oil.
Any commercial discovery in the area will be momentous for
Sao Tome and Principe, a tiny impoverished island nation in the
Gulf of Guinea which lives mostly from fishing.
Chevron did not say whether the hydrocarbons it found were
oil or gas.
(c) Reuters 2006. All rights reserved. Republication or redistribution of
Reuters content, including by caching, framing or similar means, is
expressly prohibited without the prior written consent of Reuters. Reuters
