Chevron Expands Offshore Investments in Nigeria and Angola, Aims to Revitalise Oil Production in West Africa 

The United States of America’s energy giant Chevron has announced its strategic entry into offshore blocks in Nigeria, describing the region as an under-explored oil frontier with significant untapped potential. 

This development comes amidst a period of declining oil production in Nigeria and Angola – two of West Africa’s largest producers – stemming from years of underinvestment and asset divestitures by major oil firms.

Chevron’s initiative reflects its confidence in West Africa’s offshore resources, which it sees as abundant yet relatively untapped compared to other global oil regions. 

“The region of West Africa is such a hydrocarbon-rich part of the world and relatively under-explored compared to other jurisdictions,” stated Liz Schwarze, Vice President of Global Exploration at Chevron, in an interview with Bloomberg on Tuesday. 

This renewed commitment to the area signals a different approach from other international oil majors that have been shifting their focus southward along the African coast.

Chevron has already bolstered its presence in Nigeria, Angola, and Equatorial Guinea, having recently acquired additional exploration blocks. Last month, Chevron’s Nigerian subsidiary reported a near-field oil discovery in Petroleum Mining Lease (PML) 49, situated in the shallow offshore region of the Western Niger Delta. 

This discovery represents a significant boost for Chevron’s Nigerian operations, reinforcing its intent to further explore and develop resources in this promising area.

While competitors such as Eni, Equinor, and ExxonMobil have opted to sell some of their Nigerian assets, Chevron has taken the opposite route by securing more acreage in both Nigeria and Angola. 

Notably, Nigeria’s regulatory bodies approved Exxon’s onshore asset sale to Seplat Energy last month, ending a prolonged review process lasting over two years.

Chevron’s expansion in Angola has also been noteworthy; the company signed contracts for two ultra-deep offshore blocks this summer, adding to its robust portfolio in the region. 

This move contrasts with the broader industry trend, as other oil majors, including Shell and TotalEnergies, have directed their focus further south to the burgeoning oil province offshore Namibia, where significant discoveries in the Orange Basin have triggered a new wave of exploration. 

Since 2022, Shell has made multiple oil and gas discoveries in Namibia’s Orange Basin, which extends into South African waters and has become one of Africa’s most promising oil and gas frontiers.

Chevron’s strategy underscores a renewed commitment to West Africa, a region it views as rich in potential and ripe for further exploration. 

By doubling down on Nigeria and Angola, Chevron positions itself as a key player in the quest to unlock West Africa’s offshore oil wealth, which could play a vital role in stabilising and boosting oil output across the region.