Chevron is expanding its exploration footprint in Nigeria and Angola, aiming to boost production following years of decline.
Liz Schwarze, Chevron’s Vice President of Global Exploration, stated the company’s intent to increase activity in these African nations, where output has waned in recent years. “West Africa is a hydrocarbon-rich region that remains relatively under-explored compared to other areas,” Schwarze remarked, noting that while some competitors are scaling back, Chevron is actively adding new blocks.
In Nigeria, where oil production has fallen by approximately half a million barrels per day over the past five years, Chevron recently acquired a stake in a new exploration block and reported a separate discovery last month. Additionally, Chevron secured two deepwater licenses in Equatorial Guinea, another country facing production challenges. “The proof is in the action,” Schwarze said in an interview with Bloomberg at an event in Cape Town.
As Africa’s top crude producers struggle to maintain output near past peak levels, Chevron sees frontier exploration as key to its strategy on the continent. This month, the company commenced drilling in Egypt and plans to launch an exploration campaign in Namibia in December. In Angola, which exited OPEC last year after a prolonged decline in production, Chevron acquired deepwater blocks 49 and 50.
Chevron’s recent discovery in Nigeria’s Niger Delta, made with the Meji NW-1 well in Petroleum Mining Lease 49, has the potential to yield up to 17,000 barrels per day, a “near-field find” according to a recent company statement.
In Nigeria, President Bola Tinubu has set a target to raise crude output to 4 million barrels per day by 2030, as multinationals exit onshore operations. Initially, the country aims to boost output by 1 million barrels per day over the next two years, although companies like ENI, AGIP, Shell, and Exxon Mobil are divesting from onshore assets. Nigeria’s current crude production stands at around 1.35 million barrels per day, below its OPEC quota of 1.58 million bpd.