press release

Chevron Press Release - Chevron Announces Start-up Of Significant Gbokoda Oil Field Onshore Nigeria

Map of Gbokoda oil field

SAN FRANCISCO, April 16, 1998 -- Chevron Corp. announced today it has begun production from the Gbokoda oil field in the western Niger Delta. Start-up of this significant oil field was achieved through the newly installed facilities at Olero Creek only two and a half years after the field was discovered.

The Gbokoda field comprises many sizable oil sands of Tertiary age, one of which is the single largest oil reservoir found by the Chevron/Nigerian National Petroleum Corp. (NNPC) joint venture in its 37 years of operation in Nigeria. The Gbokoda field will be developed through the extensive use of horizontal well technology. Discovered in 1995, Gbokoda is the second of four new fields scheduled to begin production this year under the Chevron-operated joint venture. The first, Opolo, in offshore Nigeria, came on production in February and is currently producing at 23,000 barrels of oil per day. Crude oil production from the new Gbokoda field will increase to 40,000 barrels of oil per day by the end of this year.

"By the year 2000, Gbokodas output will increase the joint ventures total production by more than 85,000 barrels of oil per day," said Richard Matzke, a director of Chevron Corp. and president of Chevron Overseas Petroleum Inc. "This will be a significant contribution towards Chevrons goal of producing an annual average of 600,000 barrels of oil per day for the joint venture by the year 2000," he said.

George Kirkland, chairman and managing director of Chevron Nigeria Ltd., noted that "the Gbokoda project will be the joint ventures first Zero-Flare oil field development in Nigeria." Kirkland pointed out that Gbokoda gas, produced in association with the crude oil, will be processed for commercial use through the Escravos Gas Project, inaugurated in May 1997, as a means to reduce gas flaring and to commercialize this abundant resource.

The Gbokoda field is one of three adjacent fields. The Benin River field, brought on production in 1996, currently produces 49,000 barrels of oil per day. The Dibi field, discovered in 1995 and significantly extended in 1997, will be brought on production later this year. Production from Dibi is expected to reach 65,000 barrels of oil per day by the year 2000.

Oil and gas production from the three fields are tied into a combination of new and existing facilities, and transported via pipelines to the joint ventures tank farm and export terminal at Escravos. The fields are located in the OML-49 concession, which lies about 125 miles (200 kilometers) southeast of Lagos in the western Niger Delta. Chevron Nigeria Ltd. operates the joint venture and participates with a 40 percent interest; NNPC holds the remaining 60 percent.

Updated: April 1998