Nigeria's Discovers Oil on Lease 74

© Adobe Stock/Peter Hermes Furian

Nigerian oil producer Renaissance Energy said on Tuesday it had made an oil discovery offshore Nigeria after drilling an exploration well in Oil Mining Lease (OML) 74, its first major success since taking over the asset last year.

Preliminary results showed about 1,000 feet (305 metres) of crude oil-bearing reservoirs across seven zones, with data and fluid tests confirming light oil in high-quality reservoirs, Renaissance said in a statement, without providing further details.

• OML 74 is a large shallow-water block in the eastern Niger Delta off Nigeria's coast and holds at least eight previously undeveloped discoveries.

• The discovery could bolster Nigeria's efforts to reverse declining crude output and increase reserves.

• Renaissance, which now owns Shell's former onshore and shallow-water assets, operates Nigeria's largest upstream joint venture with 18 oil leases, two export terminals and a FPSO vessel in the oil-rich delta.

(Reuters)