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Chevron strikes oil off Nigerian coast

17.05.2006 09:41 Category two - Source: CNNMoney.com

LAGOS (Reuters) - Energy major Chevron and partners including Exxon Mobil have made a first discovery of crude oil in an exploration block 70 miles off the Nigerian coast, Chevron said Wednesday.

Chevron (Research) said in a statement the partners struck oil in the Uge-1 exploration well in Oil Prospecting License 214. The well, under 16,831 feet (5,130 meters) of water, was drilled down to a depth of 4,144 feet below the seabed.

"This discovery is a further demonstration of how we are achieving superior success from a focused and high-impact exploration program," Chevron President John Watson was quoted as saying in the statement.

Chevron is the third-biggest producer of crude oil in OPEC member Nigeria, Africa's top exporter.

"Chevron is pleased with the success of the well and believes the discovery will help enhance its already strong position in Nigeria and West Africa," the statement said.

The firm's local subsidiary, Chevron Nigeria Deepwater B Ltd., has a 20 percent interest in the block, which is operated by Exxon Mobil's Nigerian unit Esso.

The Nigerian subsidiaries of ConocoPhillips (Research) and Occidental Petroleum Corp. (Research) each have 20 percent in OPL 214, while the Nigerian Petroleum Development Company, a unit of the Nigerian state oil firm, holds 15 percent.

Sasol Exploration and Production Nigeria Ltd has a 5 percent stake, while state oil firm Nigerian National Petroleum Corporation (NNPC) is the concessionaire of OPL 214.

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