KS Endeavor Update - Previous Updates

Gas Well Fire Offshore Nigeria No Longer Burning

Chevron Nigeria Limited (CNL) announced that the fire at the site of the Funiwa 1A natural gas well offshore Nigeria ceased burning on Friday, March 2. The well stopped flowing on its own.

CNL has detected no natural gas flowing from the well since the fire ceased burning and is monitoring the area continuously.

CNL will continue to drill the relief well to permanently plug and abandon Funiwa 1A.

Drilling of Relief Well Commences Offshore Nigeria

Chevron Nigeria Limited (CNL) has begun the process of drilling a relief well to seal the Funiwa 1A natural gas well. The relief well is being drilled to extinguish a fire that began Jan. 16 at the original well, approximately six miles (10 km) off the coast of Nigeria. No oil was spilled or has flowed from this natural gas well.

A rig that is being provided by Transocean, on loan from ExxonMobil, in cooperation with the Nigerian National Petroleum Corporation, has arrived at the drill site, and preparations for drilling have begun. Improved conditions, including the reduced flow of natural gas and the decreasing size and intensity of the fire have led CNL to determine that deploying a single rig to drill the relief well provides the quickest and safest way to put out the fire and permanently seal the well.

CNL drilling plans will enable the cementing and abandonment of the Funiwa 1A well. The relief well is being drilled by the Transocean Baltic rig with approvals from Nigerian authorities.

Chevron Nigeria Ltd. (CNL) has finalized plans to commence drilling a relief well to control the Funiwa Deep 1A well. The fire is still burning at the well, but continues to diminish. Based on the condition of the well, the safest way to control the well is to drill a relief well to kill the well at reservoir depth.

A rig that is being provided by Transocean, on loan from ExxonMobil, in cooperation with the Nigerian National Petroleum Corporation, has arrived at the drill site, and preparations for drilling have begun. Improved conditions, including the reduced flow of natural gas and the decreasing size and intensity of the fire have led CNL to determine that deploying a single rig to drill the relief well provides the quickest and safest way to put out the fire and permanently seal the well.

CNL continues to monitor the well for impacts to the environment. CNL has hired local community residents as beach walkers to monitor the shoreline. To date there have been no reports of crude oil on the beaches.

CNL has moved food and supplies to the communities in the area to recognize the help and support that they have given the company.

Chevron Nigeria Ltd. (CNL) is finalizing plans to commence drilling two relief wells to control the Funiwa Deep 1A well. The fire is still burning at the well, but at a diminished rate. Based on the condition of the well, the safest way to control the well is to drill a relief well to kill the well at reservoir depth.

CNL is mobilizing two rigs and planning to drill two relief wells. The rigs are being provided by Transocean, on loan from ExxonMobil, and Noble, in cooperation with ENI and the Nigerian National Petroleum Corporation. It is estimated drilling could begin within the next 7 to 10 days.

CNL continues to monitor the well for impacts to the environment. CNL has hired local community residents as beach walkers to monitor the shoreline. To date there have been no reports of crude oil on the beaches.

We are currently moving food and supplies to the communities in the area to recognize the help and support that they have given us.

Chevron Nigeria Ltd. (CNL) is finalizing plans to commence drilling a relief well to control the Funiwa Deep 1A well, a natural gas exploration well in shallow water offshore Nigeria. The fire is still burning at the well site. No rig structure can be seen above the water. Based on the condition of the well, the safest way to control it is to drill a relief well that will kill the well at depth.

Contrary to some erroneous media reports, at this time there is no oil spilled as a result of this incident. We reiterate that this is a natural gas well.

With the gas flow, fine silt and mud on the seabed floor is disturbed and rises to the surface. Discoloration of the water is visible near the well site.

CNL is monitoring the well for impacts to the environment. CNL has hired local community residents as beach walkers to monitor the shoreline. No impacts to the beach have been reported.

CNL is cooperating fully with all relevant Nigerian government authorities.

The company affirms its commitment to operational excellence, the safety of its personnel, security of its assets and protection of the environment.

Image of the KS Endeavor fire at the Funiwa Field in Nigeria on Jan. 23, 2012.

Chevron can confirm some additional details about the well being drilled by its Chevron Nigeria Limited subsidiary using the KS Endeavor drilling rig in the Funiwa Field, offshore Nigeria.

The Funiwa and nearby North Apoi fields were discovered in 1973 and 1978 respectively. Since the discoveries, several wells have tested and produced from the shallow and intermediate reservoirs. There have been 106 wells drilled to date, with 37 oil reservoirs and seven gas condensate reservoirs discovered. The wells have an average depth of 10,000 feet. Funiwa Deep 1A was proposed as a straight hole to a depth of 16,500 feet. The exploration target interval is between 13,500 feet and 16,500 feet total vertical depth.

The jack-up rig was operating in a water depth of approximately 40 feet, about six miles (10 km) offshore and the well had been drilled to 12,945 feet at the time of the incident.

Chevron Nigeria Limited continues with the planning and preparations necessary to drill a relief well in order to bring the well under control and extinguish the fire.

Images of the KS Endeavor fire at the Funiwa Field in Nigeria on Jan. 17, 2012.

Images of the KS Endeavor fire at the Funiwa Field in Nigeria on Jan. 16, 2012.