China, Nigeria state firms find oil in Niger Delta

By AFP

July 15, 2010 Updated Jun 15, 2009 at 11:01 PM CDT

China's state oil firm SIPEC and Nigerian Petroleum Development Company (NPDC) have discovered crude oil from Niger Delta region of the west African nation, an official statement said.

SIPEC, a subsidiary of China Petroleum Corporation, and NPDC, the exploration and production arm of the state-run Nigerian National Petroleum Corporation (NNPC), jointly discovered crude in the Oil Mining Lease (OML) 64, also known as Kakaku-1 well, the statement said.

NNPC said in the statement that the well was drilled to a total depth of 11,150 feet and encountered six major hydrocarbon intervals, three out of which are bearing oil.

"Initial test on the well indicates that the oil is similar to most oil discovered in Nigeria, that is sweet light crude. Production from the well ranges between 1,284 and 3,110 barrels per day and zero water content," said the statement.

Production from the well will begin after field appraisal, it said.

NPDC and SIPEC entered into an alliance in 2004 and jointly developed the OML 64 which covers an area of about 278 square kilometres (111 square miles), the statement said.

NPDC currently produces between 50,000 and 70,000 barrels of crude oil per day and has put in place measures to raise the production level to about 150,000 barrels per day by the turn of the decade, the statement said.

Nigeria, an OPEC member, derives more than 95 percent of its foreign exchange earnings from oil.

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