NNPC, FIRST E&P Unveil Major Hydrocarbon Discovery at Songhai Field Amid Nigeria’s Quest for Oil Production Boost

The Nigerian National Petroleum Company Limited (NNPC) and FIRST Exploration & Petroleum Development Company Limited (FIRST E&P) Joint Venture (JV) have announced a significant hydrocarbon discovery at the Songhai Field in Oil Mining Lease (OML) 85.

This landmark discovery is a critical development as Nigeria seeks to boost its oil and gas production to meet domestic demands and increase foreign exchange earnings through exports.

The Songhai well was spudded on November 18, 2024, as part of the JV’s five-year plan to enhance oil production. Drilled to a total depth of 8,883 feet measured depth (MD) in 30 meters of water, the well-encountered hydrocarbons across eight reservoirs. The reservoirs feature over 1,000 feet of hydrocarbon-bearing sands, many demonstrating excellent reservoir properties.

Preliminary analyses suggest substantial volumes of oil and gas, reinforcing the Songhai Field’s commercial potential. Further evaluations, including formation testing and well data integration, are expected to refine resource estimates and optimize field development strategies.

This discovery arrives at a crucial time for Nigeria. The country recently increased its oil production to over 1.5 million barrels per day (mbpd), meeting the Organization of the Petroleum Exporting Countries (OPEC) production quota for the first time in a long while. The milestone is a significant recovery from periods of underperformance, which were marred by operational challenges, oil theft, and pipeline vandalism.

The success at Songhai Field aligns with Nigeria’s broader objective of ramping up oil and gas output not only to ensure the availability of petroleum products for domestic consumption but also to enhance export potential. Increased production will support Nigeria’s foreign exchange (forex) earnings, crucial for an economy heavily reliant on oil revenue.

Segun Owolabi, General Manager of Exploration and Development at FIRST E&P, highlighted the strategic importance of the discovery.

“This discovery marks a major milestone in our efforts to unlock the full potential of our assets. The success at Songhai Field underscores the effectiveness of our exploration strategy and our commitment to delivering sustainable value to all stakeholders,” he said.

NNPC, as the majority partner in the JV, also emphasized the discovery’s potential in advancing Nigeria’s upstream production goals. Chief Upstream Investment Officer of NUIMS, Seyi Omotowa, noted: “This aligns with NNPC Limited’s mandate to drive production growth and cost optimization. The success at Songhai Field reflects our commitment to strategic partnerships, advanced technology, and efficient operations to maximize Nigeria’s hydrocarbon potential sustainably.”

NNPC’s Group Chief Executive Officer, Mallam Mele Kyari, reiterated the company’s dedication to efficiency and long-term value creation.

“This discovery reaffirms the potential of Nigeria’s offshore assets and the importance of collaboration in boosting reserves and production. NNPC Limited remains committed to driving efficiency and long-term value creation for the nation,” he said.

Current and Future Operations

The NNPC/FIRST E&P JV currently maintains a steady production of approximately 57,000 barrels of oil per day (bopd) from its OML 83 and 85 assets. The new discovery at Songhai Field is expected to further enhance this output, bolstering Nigeria’s energy security and contributing to the country’s overall production targets.

The JV’s operations are guided by rigorous safety standards, technical expertise, and efficient project execution. The company has achieved over 9 million man-hours of Lost Time Injury (LTI)-free operations, demonstrating its leadership in safe and responsible hydrocarbon development.

With Nigeria’s forex reserves under pressure, increased oil production offers a potential lifeline. The Central Bank of Nigeria (CBN) has struggled to maintain stable forex reserves, impacting the naira’s stability and fueling inflation. Energy experts have touted boosting oil exports to generate much-needed foreign currency, helping to stabilize the economy.

Furthermore, higher production volumes would reduce Nigeria’s dependence on costly petroleum product imports. With the Dangote Refinery yet to start full-scale production, additional crude output could support local refineries.

Gas Utilization Drive

In addition to the Songhai Field discovery, NNPC Gas Marketing Ltd (NGML) and its partner, NIPCO Gas Ltd, have signed a Gas Sale and Purchase Agreement (GSPA) with Ssonic Petroleum Ltd. Under the agreement, the NGML-NIPCO Unincorporated Joint Venture (UJV) will supply 80 million standard cubic feet per day of natural gas to Ssonic Petroleum’s proposed Liquefied Natural Gas (LNG) plant in the Lekki Free Trade Zone, Lagos State, for 20 years.

The agreement aligns with NNPC’s strategy to boost domestic gas utilization, promoting gas as a cleaner, cheaper, and more environmentally friendly fuel in support of global efforts to reduce carbon emissions.

Olufemi Soneye, Chief Corporate Communications Officer of NNPC, said “This agreement is part of our broader strategy to enhance domestic gas utilization, drive industrial and economic growth, and promote the use of gas as a cleaner alternative to traditional fuels.”