highlights of operations
Chevron is one of the largest oil producers in Nigeria and one of its largest investors.
In Nigeria, we operate under a joint-venture arrangement with the Nigerian National Petroleum Corporation (NNPC) for the onshore and offshore assets in the Niger Delta region.
Chevron also has extensive interests in multipartner deepwater operations. We operate the Agbami Field, one of Nigeria’s largest deepwater discoveries. We also have a nonoperated interest in the Usan Field.
exploration and production
Through Chevron’s principal subsidiary in Nigeria, Chevron Nigeria Limited (CNL), the company operates and holds a 40 percent interest in eight concessions in the onshore and near-onshore regions of the Niger Delta under a joint-venture arrangement with the NNPC. Chevron also does business through other subsidiaries in Nigeria.
In 2016, Chevron’s net daily production in Nigeria averaged 204,000 barrels of crude oil, 159 million cubic feet of natural gas and 4,000 barrels of liquefied petroleum gas (LPG).
Chevron has interests, ranging from 20 percent to 100 percent, in three operated and six nonoperated deepwater blocks in Nigeria.
Chevron operates the Agbami Field, which lies 70 miles (113 km) off the coast of the central Niger Delta region and spans 45,000 acres (182 sq km). Discovered in 1998, the Agbami Field is at a water depth of approximately 4,800 feet (1,463 m). Chevron has a 67.3 percent interest in the field. In 2016, net daily production averaged 120,000 barrels of crude oil and 12 million cubic feet of natural gas.
Agbami is a subsea development with wells tied back to a floating production, storage and offloading (FPSO) vessel. The first two phases of infill drilling, Agbami 2 and Agbami 3, are nearly completed, with the last of the 15 wells expected to come on line in the second half of 2017.
Chevron has a 30 percent nonoperated working interest in the Usan Project, in 2,461 feet (750 m) of water, 62 miles (100 km) off the coast of the eastern Niger Delta region. Net daily production in 2016 averaged 28,000 barrels of crude oil and 4 million cubic feet of natural gas.
The Aparo Field and the third-party-owned Bonga SW Field share a common geologic structure and are planned to be developed jointly. The structure lies in 4,300 feet (1,311 m) of water, 70 miles (113 km) off the coast of the western Niger Delta region. The proposed development plan involves subsea wells tied back to an FPSO vessel. Spending is being paced until market conditions and reductions in project costs are sufficient to support the development of this project.
Chevron operates and has a 55 percent interest in Oil Mining Lease 140. The block lies in roughly 8,000 feet (2,438 m) of water, 90 miles (145 km) off the coast of the western Niger Delta region, and includes the Nsiko discoveries. We plan to continue evaluating development options for these discoveries.
In the Usan area, a discovery was made in 2016 at the Owowo prospect. In 2017, we plan to evaluate development options for the multiple discoveries made in that area.
Chevron is involved in natural gas projects in the western Niger Delta and Escravos areas, including the optimization of the Escravos Gas Plant (EGP), the Escravos Gas-to-Liquids (EGTL) facility and the Sonam Field Development Project.
CNL operates the EGP, which has a total capacity of 680 million cubic feet per day of natural gas and LPG and a condensate export capacity of 58,000 barrels per day. Chevron and the NNPC also operate the EGTL facility, a 33,000-barrel-per-day gas-to-liquids plant. We continued to optimize these facilities in 2016.
The Sonam Field Development is designed to use the EGP facilities to deliver 215 million cubic feet of natural gas per day to the domestic gas market and produce a total of 30,000 barrels of liquids per day. First production at the 40 percent-owned and operated project is expected in the second half of 2017.
With a 36.7 percent interest, Chevron is the largest shareholder in the West African Gas Pipeline Company Limited, which owns and operates the 421-mile (678-km) West African Gas Pipeline. The pipeline supplies customers in Benin, Ghana and Togo with Nigerian natural gas for power generation and industrial applications. It has the capacity to transport approximately 170 million cubic feet of natural gas per day.
in the community
Chevron takes its role as a corporate citizen in Nigeria seriously and is active in many projects that promote health, education and economic development.
responding to needs in the niger delta
In 2005, CNL adopted the Global Memorandum of Understanding as a new approach to community engagement in the Niger Delta, giving communities a greater role in managing their development through Regional Development Committees. Since then, the NNPC/Chevron joint venture has spent more than $100 million on roughly 600 programs that have provided scholarships; built new schools, medical facilities and housing; and supported agriculture development and infrastructure improvements.
In 2011, Chevron announced its $50 million alliance with the U.S. Agency for International Development and the Niger Delta Partnership Initiative (NDPI) Foundation to support a portfolio of programs designed to address socioeconomic challenges in the Niger Delta region. The Foundation for Partnership Initiatives in the Niger Delta (PIND) was incorporated in Nigeria to implement and support these programs. In 2014, Chevron committed an additional $40 million in funding to the NDPI through 2019.
The NDPI and PIND complement Chevron’s existing social investment efforts by focusing on one strategic objective: achieving a peaceful, enabling environment for equitable growth in the Niger Delta.
fighting HIV/AIDS in Nigeria
Chevron helps fight the spread of HIV/AIDS in Nigeria. In 2008, we directed $5 million of the $30 million we contributed to the Global Fund to Fight AIDS, Tuberculosis and Malaria to Nigeria’s National Agency for the Control of AIDS in support of AIDS treatment programs. In 2015, Chevron committed an additional $5 million to Nigeria through the Global Fund to support prevention of mother-to-child transmission (PMTCT) of HIV.
In 2012, Chevron partnered with Born Free Africa to help develop capacity within state ministries of health. The partnership supported PMTCT of HIV activities in Nassarawa, Bayelsa and Rivers states – helping equip more than 670 health facilities.
That same year, Chevron announced a partnership with the nongovernmental organization (NGO) Pact to support PMTCT efforts. In 2014, we committed an additional $1.7 million to the PROMOT project, a PMTCT initiative in Bayelsa state that works with community-based organizations and local governments to provide education and testing services. More than 53,000 pregnant women have been tested for HIV and received counseling. The second phase of the PROMOT project was launched in 2016 when Chevron provided $1.43 million to support Pact’s two-year PMTCT program in Bayelsa state.
supporting public health
Chevron’s Riverboat Clinic provides a mobile health service to communities along the creeks and islets of the Escravos and Benin rivers. The clinic has been providing free treatment since it was launched in 2001.
Our Roll Back Malaria initiative, which was launched in 2006, provides financial and volunteer support to pregnant women and children under age 5. Since its inception, the program has offered education and/or treatment to more than 32,000 people.
To support early diagnosis and treatment of tuberculosis and other chest and lung diseases, Chevron and its Agbami partners have donated 25 chest clinics to hospitals since 2008. The clinics are equipped with X-ray units, consulting rooms, laboratories and wards.
In 2014, Chevron donated the Molecular Biology Research Laboratory to the University of Lagos Teaching Hospital. The lab is equipped with tools to diagnose, manage and treat people with genetic abnormalities. Since opening, the lab has conducted more than 1,300 DNA extractions and amplifications – processes that help diagnose diseases and conditions. In 2014, the lab also helped detect the first case of Ebola in Nigeria.
In 2009, Chevron and its Agbami partners initiated the Medical and Engineering Professionals scholarship program. More than 15,800 college students have benefited from the program, and 310 have graduated with first-class honors.
We also support the Scholarship for the Blind program, which aids visually challenged students in the states where we operate.
Chevron and its deepwater partners have supported secondary schools in Nigeria by building and equipping 33 science laboratories and 18 hybrid – electronic and conventional – libraries. These initiatives have contributed to the education of more than 16,000 students across 33 states.
care for the environment
In the Lagos area, Chevron funds the Lekki Conservation Centre, a 190-acre (0.8-sq-km) sanctuary that protects the flora and fauna of the Lekki Peninsula by promoting sound environmental practices through research and education. The sanctuary is the only one of its kind in the area.
record of achievement
Chevron began doing business in Nigeria in 1913, when Texaco® products were first marketed in the country.
Following the Nigerian Indigenization Decree of 1978, Chevron divested 40 percent of its shareholdings in Chevron Oil Nigeria PLC to the Nigerian public while retaining 60 percent equity.
In 1996, we built our state-of-the-art storage terminal and loading facility in Apapa. The facility has a 103,000-barrel capacity.
Our energy exploration and production work in Nigeria began more than 50 years ago.
In 1963, American Overseas Petroleum Ltd. – which later became Texaco Overseas (Nigeria) Petroleum Co. – discovered oil at the Koluama Field, offshore Nigeria. In that same year, CNL started drilling near the Escravos River and found the Okan Field.
Discovered in 1998, the Agbami Field is one of the largest deepwater finds in Nigeria’s history.
health, environment and safety
Nigeria is one of three African countries participating in the Arrive Alive road safety program pioneered by Chevron.
In 2004, Chevron upgraded the Okan Platform, installed in 1963, and other mature platforms to improve pollution prevention measures and safety systems.
Chevron is working across its operations to eliminate routine gas flaring and venting in line with company requirements and local regulations.
CNL has received several awards and honors:
- In 2003, CNL won the U.S. State Department’s Award for Corporate Excellence. The company was praised for its work in Nigeria for, among other things, the Riverboat Clinic, our HIV/AIDS prevention efforts and our airlift of more than 2,000 community members to safety in 2003 during ethnic conflict in the Niger Delta.
- The Nigerian Conservation Foundation honored CNL in 2002 with its Award for Environmental Excellence.
- In 2014, the Chartered Institute of Personnel Management of Nigeria presented CNL with its Human Resources Best Practice Award, in the Overall and Oil and Gas categories.
- Chevron was given an Award of Appreciation from the Tertiary Education Trust Fund in recognition of contributions made to improve the quality of education in Nigeria.
- In 2012, CNL was named Best Community Development Company of the Year by the National Association of Energy Correspondents, a group of journalists covering the energy sector.
- For CNL’s contributions to the development of Nigeria’s accountants, the Institute of Chartered Accountants of Nigeria gave CNL its Merit Award in the Corporate category.
- Change-a-Life Foundation, a Lagos-based NGO, honored CNL with its Heroes of Our Community Award for our pioneering actions in providing cutting-edge equipment and training for the detection and management of the Ebola virus in Nigeria.
- In 2015, Businessday, Nigeria’s leading business newspaper, named Chevron one of the 100 Most Respected Companies in Nigeria for our meaningful contributions to the socioeconomic development of the country.
- In 2016, CNL was given an Outstanding Corporate Tax Payer Award by the Delta state government.
- In 2016, the Nigerian Environmental Society conferred on CNL the Green Label Award in recognition of the company’s sustainable development projects, good environmental management and conservation practices.
- At the Sustainability, Enterprise and Responsibility Awards ceremony in Lagos in 2016, CNL was named the Best Company in Promotion of Good Health and Well-Being in recognition of the company’s contributions to the success of the PROMOT program in Bayelsa state.
Chevron is committed to the Nigerian government’s policy on local content development. CNL fosters strong business partnerships with local service providers and product suppliers and works to increase their professional capabilities. CNL’s Local Community Content Development team promotes commerce with local businesses.
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