Chevron Plans to Expand Oil Exploration in Nigeria and Angola Amid Anticipated Production Rebound

Chevron Corporation has announced plans to increase its exploration activities in African oil-producing nations like Nigeria and Angola, where the company sees potential for a resurgence in oil production despite years of decline. This comes as part of Chevron’s broader strategy to strengthen its holdings in West Africa, a region the company considers hydrocarbon-rich but under-explored compared to other areas of the world.

Speaking in an interview in Cape Town, Liz Schwarze, Chevron’s Vice President of Global Exploration, highlighted the region’s potential: “It’s such a hydrocarbon-rich part of the world and relatively under-explored compared to other jurisdictions. The proof is in the action.”

Chevron's Discovery in Nigeria

Chevron Nigeria’s renewed focus on oil exploration follows a significant oil discovery in the Niger Delta, which has the potential to produce up to 17,000 barrels of oil per day. This “near-field find,” as it was described, was made using the Meji NW-1 well within Petroleum Mining Lease 49, located in the shallow offshore area of the Western Niger Delta. The company announced the discovery in a statement released on October 18, 2024.

According to Chevron, this find aligns with its global exploration strategy, which aims to identify new resources that can extend the lifespan of existing oil assets while enabling faster development and production. Chevron’s approach emphasizes tapping into near-field exploration opportunities that leverage existing infrastructure, minimizing development time.

Chevron’s Broader Exploration Plans in Africa

Chevron’s commitment to oil exploration across Africa is part of its frontier exploration efforts to unlock new resources. In addition to its activities in Nigeria, the company has begun drilling a well in Egypt this month and is preparing for an exploration campaign in Namibia set to begin in December. Furthermore, Chevron has acquired deepwater blocks 49 and 50 in Angola, which saw a decline in crude production in recent years and left the Organization of Petroleum Exporting Countries (OPEC) last year.

By expanding its exploration footprint across the continent, Chevron is positioning itself to capitalize on untapped hydrocarbon resources, helping boost production and meet global energy demands.

Nigeria's Push to Boost Oil Production

Chevron’s exploration push comes as Nigeria continues its efforts to ramp up crude oil production. In 2023, President Bola Tinubu set an ambitious target of increasing Nigeria’s oil production to 4 million barrels per day by 2030. This goal comes amid the departure of several multinational oil companies from Nigeria’s onshore oil operations, including ENI, AGIP, Shell, and ExxonMobil, which have either completed or announced the sale of their onshore oil and gas assets.

Despite these challenges, Nigeria has struggled to meet both its OPEC quota and its own domestic refinery needs. Since the beginning of 2024, the country’s oil production has hovered between 1.2 and 1.3 million barrels per day. In September 2024, Nigeria’s average crude oil production fell by 33,000 barrels, reaching 1.405 million barrels per day. This was a decline from 1.438 million barrels per day in August, according to OPEC’s October oil market report.