Chevron Nigeria and state-owned NNPC have announced a fresh hydrocarbon discovery in the Niger Delta, marking the American oil major’s third find in the region since 2024, a rare bright spot as international competitors abandon Nigeria’s troubled onshore and shallow-water operations.
The latest discovery, made at the Awodi-07 appraisal and exploration well in late 2025, comes amid Nigeria’s urgent push to revive flagging crude production. NNPC described the results as “highly encouraging,” confirming significant hydrocarbons across multiple reservoir zones.
What was found
The well encountered hydrocarbons across multiple reservoir zones in Nigeria’s shallow offshore western Niger Delta. While exact recoverable volumes remain undisclosed, NNPC characterised the find as substantial. The discovery follows two previous finds in 2024, including the Meji NW-1 well which reached a depth of 8,983 feet and encountered 690 feet of hydrocarbons within Miocene sands.
Operating under a joint venture where Chevron holds 40 per cent and serves as operator whilst NNPC holds the remaining share, the partnership has been systematically exploring existing licenses to extend field life and unlock additional production capacity.
Why it matters
The discovery arrives at a critical juncture for Nigeria’s petroleum industry. The country’s crude output has collapsed from a 2005 peak of 2.45 million barrels per day to roughly 1.5 million currently, a decline driven by chronic underinvestment, infrastructure theft, and deterred international capital.
Chevron’s commitment stands in stark contrast to the exodus of its peers. Shell, ExxonMobil, Eni, and TotalEnergies have either completed or announced sales of their Niger Delta onshore and shallow-water assets to local operators, citing security concerns, regulatory uncertainty, and diminishing returns from ageing fields.
Chevron is thought to be Nigeria’s third largest producer, with stakes in 62 assets, including the prolific Agbami deepwater field. In September 2024, NNPC announced Chevron was targeting production of 165,000 barrels per day from five key licenses following their conversion to terms under Nigeria’s 2021 Petroleum Industry Act, legislation designed to modernise fiscal terms and attract investment.
Strategic calculation
Chevron’s persistence reflects its “near-field” exploration strategy: finding resources adjacent to existing infrastructure to minimise development costs and accelerate production. Kevin McLachlan, Chevron’s Vice President of Exploration, noted the discoveries “complement Chevron’s global exploration strategy to balance infrastructure-enabled and frontier activity”.
This approach allows Chevron to leverage decades of operational presence whilst competitors write down assets. The company also holds interests in deepwater blocks and recently acquired stakes in Oil Prospecting License 215, consolidating its Nigerian portfolio.
Challenges ahead
Success is far from guaranteed. Nigeria’s oil sector faces systemic headwinds: pipeline vandalism, crude theft estimated in the hundreds of thousands of barrels daily, regulatory delays, and community tensions over environmental damage and revenue sharing.
President Bola Tinubu has set an ambitious target of 4 million barrels per day by 2030, but achieving this requires not just new discoveries but sustained investment in infrastructure, security, and governance reforms.
For Chevron, the discoveries validate its contrarian bet on Nigeria, whilst others depart. Yet converting finds into flowing barrels will test whether improved fiscal terms under the Petroleum Industry Act can overcome the operational realities that drove competitors away. As international majors retreat to deepwater projects or exit Nigeria entirely, Chevron’s commitment and its ability to bring these discoveries online, will serve as a crucial test case for Africa’s largest oil producer’s reform agenda.
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