Chevron Corp. Plans to increase its exploration holdings in African oil producers such as Nigeria and Angola, where it anticipates the potential for a production rebound despite years of decline.
In an interview in Cape Town, Liz Schwarze, Vice President of Global Exploration at Chevron, noted that West Africa is a hydrocarbon-rich region that is relatively under-explored compared to other parts of the world.
He stated, “such a hydrocarbon-rich part of the world and relatively under-explored compared to other jurisdictions. The proof is in the action.”
Chevron Nigeria’s plan to ramp up oil exploration follows a recent oil discovery in the Niger Delta, which has the potential to produce up to 17,000 barrels per day.
The discovery, termed a “near-field find,” was made with the Meji NW-1 well within Petroleum Mining Lease 49, according to a statement from Chevron released on October 18. The block is located in the shallow offshore region of the Western Niger Delta.
In the statement, the company explained that the discovery supports Chevron’s broader global exploration strategy, which focuses on identifying new resources that can extend the life of existing assets and enable faster development and production.
Chevron’s increase in oil exploration across Africa
- Frontier exploration continues to be a key part of Chevron’s resource search on the continent, Schwarze said.
- The company began drilling a well in Egypt this month and plans to launch an exploration campaign in Namibia in December.
- In Angola, which left the Organization of Petroleum Exporting Countries (OPEC) last year after a decline in crude production, Chevron has acquired deepwater blocks 49 and 50.
Nigeria’s desire to increase oil production
Last year, President Tinubu set a target to increase Nigeria’s crude oil production to 4 million barrels per day by 2030, amidst the departure of multinational companies from onshore operations.
In recent years, oil giants like ENI, AGIP, Shell, and Exxon Mobil have either announced or completed the sale of their onshore oil and gas assets.
- Meanwhile, Nigeria has faced challenges in boosting oil production to meet both its OPEC quota and domestic refinery needs. Since the start of the year, the country’s output has remained between 1.2 and 1.3 million barrels per day.
- In September, Nigeria’s average crude oil production dropped by 33,000 barrels, reaching 1.405 million barrels per day.
- According to OPEC’s October oil market report, Nigeria’s production decreased from 1.438 million barrels per day in August, based on secondary data from Nigerian authorities.
