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Weekly UpdatesChevron Nigeria operates the Escravos group of oilfields in the Niger Delta which have a nominal capacity of 550,000 b/d, but with 400,000 b/d still shut in because of violence and it will take months of peace for output to rise form its current level of 150,000 b/d. Chevron's oil production capacity for this JV with NNPC - apart from its PSCs - will be expanded to reach 700,000 b/d by 2012 or later. In March/April 2003, the violence caused Chevron to close its operations and vacate its fields.
Chevron has more than 25 fields, mostly of the Escravos group in the Warri region. Chevron holds 40% of the JV and NNPC has 60% in concessions covering 2.2m acres. Only one third of its production is onshore, where communities are often hostile, and the rest is in shallow waters also vulnerable to attacks. Problems Chevron has faced include violence, threats, kidnappings and theft - as in the case of Shell (see OMT and the background in gmt6NigrFieldsAug6-07).
Benin River field came on stream in 1996 at 30,000 b/d and Ewan began producing in 1997 at 30,000 b/d. The offshore fields of Okan and Mefa are the sources of associated gas for a pipeline, on stream since late April 1997, feeding Nigeria's industry and power plants. Ewan, in the west of the delta had the potential to produce 100,000 b/d. Ewan's oil reserves were put at more than 160m barrels. Gbokoda offshore came on stream in April 1998 and its targeted rate of 85,000 b/d was reached in 2001. Opolo came on stream in February 1998 at 23,000 b/d. Dibi field came on stream later.
Chevron's crude oils are blended into an export blend, Escravos, 36? API with 0.2% S, popular among Western and Asian refiners. It is shipped by SBM from the Escravos terminal. Perched on the mouth of the Niger Delta, the terminal has been improved.
The first of its fields, Okan found in 1964, has Nigeria's oldest offshore platform and still has the capacity to produce 50,000 b/d, excluding about 15,000 b/d of oily water. It has been a challenge since Chevron absorbed Gulf Oil's Nigerian operations in 1985. Gulf had poor maintenance. Government rules only allow 100 parts of oil per million parts of water - an average of 75 parts per month - to be pumped into the sea as the oil is filtered on the platform before being piped ashore.
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