‎Chevron Records Third Oil Discovery as Nigeria’s Reforms Gain Traction
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‎Nigeria’s oil sector reforms are beginning to yield tangible results, with Chevron Nigeria Limited recording its third successful exploration discovery since late 2024, an outcome that signals renewed investor confidence after years of regulatory uncertainty and underinvestment.
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‎The Nigeria National Petroleum Company Limited (NNPC Ltd)/Chevron Nigeria Limited Joint Venture confirmed the completion of the Awodi-07 appraisal and exploration well in the shallow offshore western Niger Delta on December 28, 2025. The well encountered about 675 feet of hydrocarbon pay across multiple reservoirs.
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‎Drilled to a total depth of 12,420 feet in under three weeks, the well was plugged and suspended following successful wireline logging and fluid sampling. Of the total hydrocarbon pay, about 310 feet came from appraisal reservoirs in line with pre-drill estimates, while 365 feet were recorded across six exploration sands, highlighting strong development potential.
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‎Chevron Nigeria’s Chairman and Managing Director, Jim Swartz, said the discovery reflects the effectiveness of the company’s exploration strategy and its partnership with NNPC Ltd.
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‎“This success demonstrates the strength of our exploration programme and the value of collaboration with our senior partner, NNPC,” Swartz said.
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‎The latest discovery reinforces the impact of Nigeria’s oil sector reforms anchored on the Petroleum Industry Act (PIA), which streamlined fiscal terms, clarified regulatory processes, and improved investment certainty after more than a decade of stalled decision-making.
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‎Chevron’s Vice President for Exploration, Kevin McLachlan, noted that the discoveries align with the company’s global focus on near-field exploration that leverages existing infrastructure.
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‎“All three discoveries complement Chevron’s global exploration strategy by balancing infrastructure-enabled and frontier activity,” McLachlan said, adding that such an approach reduces development costs and shortens time to first oil, key priorities as oil companies face increasing capital discipline.
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‎The timing is significant for Nigeria, which has struggled in recent years to meet OPEC production quotas due to crude theft, infrastructure constraints, and regulatory delays, while competing with emerging deepwater provinces in Guyana and Suriname.
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‎Industry analysts say Chevron’s concentration on shallow-water assets, where infrastructure already exists, validates the federal government’s reform agenda under President Bola Ahmed Tinubu, which prioritises oil sector revival to stabilise foreign exchange earnings and support budget financing.
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‎Nigeria’s crude oil output fell below 1.3 million barrels per day in 2023, down from over 2 million barrels per day a decade earlier. Chevron’s strategy of extending the life of mature assets aligns with national objectives to boost production while keeping costs under control.
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‎The NNPC Ltd/Chevron Joint Venture said it would continue working closely with regulators and host communities, reinforcing the collaborative investment model Nigeria is promoting as it competes for global exploration capital in an era of energy transition.