ExxonMobil announce 'significant' discovery in Nigeria

Exxon Flash Foods Dr Glynn CountyExxonMobil make a significant discovery in offshore Nigeria despite a loss of earnings in third quarter 2016. (Image source: Michael Rivera/Commons)ExxonMobil announced a significant oil discovery offshore of Nigeria of around 500mn to 1bn barrels of oil

According to ExxonMobil press, released on 27 October 2016, it was announced that a significant discovery with a potential recoverable resource of around 500mn to 1bn barrels of oils was discovered on the Owowo field, offshore Nigeria. 

The Owowo-3 well encountered around 140 metres of oil-bearing sandstone reservoir. Owowo-3 extends on the discovery of Owowo-2 which encountered about 157 metres of oil-bearing sandstone reservoir. 

President of ExxonMobil Exploration Company, Stephen M Greenlee said "We are encouraged by results and will work with our partners and government on future development plans." 

According to Exxon press, Owowo-3 was safely drilled to 3,173 metres in 576 metres of water. The well was drilled by ExxonMobil affiliate Esso Exploration and Production Nigeria (Deepwater ventures) Limited and proved additional resource in deeper reservoirs. 

Despite these encouraging signs, ExxonMobil have had a disappointing third quarter earnings of 2016, 38 per cent down on where they were this time in 2015. These earnings were US$2.7bn, or US$0.63 per diluted share, which is compared to US$4.2bn last year. ExxonMobil released a press release on this and put the lower earning down to lower refining margins and commodity prices. 

“ExxonMobil’s integrated business continues to deliver solid results,” said Rex W. Tillerson, chairman and chief executive officer. “While the operating environment remains challenging, the company continues to focus on capturing efficiencies, advancing strategic investments, and creating long-term shareholder value.”

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