Chevron lifts lid on Obo discovery
By Upstream staff
Chevron has finally acknowledged that last May's Obo 1 wildcat in the Joint Development Zone between Nigeria and Sao Tome & Principe was an oil discovery.
However, country manager Tim Parson, speaking at the weekend in Sao Tome, said the quantity of oil did not justify commercial production.
He said further exploration is planned 'very soon' to prove up the potential of Block 1, in which the US supermajor has a 51% operating stake alongside ExxonMobil (40%) and Norwegian-Nigerian tie-up Dangote-Energy Equity Resources (9%).
Last year, the partners revealed that the probe, drilled by Tansocean drillship Deepwater Discovery in a water depth of 1720 metres, hit 150 feet of hydrocarbons amid industry speculation that the well was deliberatley sunk off-structure to determine the aerial extent of the targeted play.
Indications that a world-class discovery had been found were initially backed by public statements issued by Nigerian Energy Minister Edmund Daukoru, but neither government officials nor company executives have subsequently said anything about the tight-holed probe.
The consortium paid a total of $123 million for the block, believed to be one of the most prospective in the JDZ, which is managed by the Abuja-based Joint Development Authority, set up by the governments of Nigeria and Sao Tome.
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22 January 2007 14:05 GMT | last updated: 22 January 2007 14:25 GMT
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