US-based Exxon Mobil has announced a significant oil discovery with a potential recoverable resource of between 500 million and one billion barrels on the Owowo field, located offshore Nigeria.

The Owowo-3 well, which was drilled to 10,410ft in 1,890ft of water, encountered about 460ft of oil-bearing sandstone reservoir and extends the resource discovered by the Owowo-2 well.

Owowo-2 encountered about 515ft of oil-bearing sandstone reservoir.

"Owowo-2 encountered about 515ft of oil-bearing sandstone reservoir."

Exxon Mobil affiliate Esso Exploration and Production Nigeria drilled the Owowo-3 well that proved additional resources in deeper reservoirs.

Exxon Mobil Exploration Company president Stephen Greenlee said: “We are encouraged by the results and will work with our partners and the government on future development plans.”

The Owowo field covers portions of the contract areas of oil prospecting licence 223 (OPL 223) and oil mining licence 139 (OML 139).

Exxon Mobil holds 27% interest in the field and is the operator for OPL 223 and OML 139.

Joint venture partners are Chevron Nigeria Deepwater (27%), Total E&P Nigeria (18%), Nexen Petroleum Deepwater Nigeria (18%), and the Nigeria Petroleum Development Company (10%).

The oil and gas company Exxon Mobil uses new technology to help meet the world’s growing energy needs.

The company also refines and markets petroleum products.