Good News: Big Oil Company Announces Investment in Nigeria, Other African Country

• Chevron has expanded its exploration acreage in African oil producers including Nigeria and Angola
• The company acquired a stake in a new exploration block and made a separate discovery last month
• While some peers are heading for the exit, the development shows that Chevron is adding multiple blocks

Legit.ng journalist Zainab Iwayemi has 5-year-experience covering the Economy, Technology, and Capital Market.

Despite years of decline, Chevron Corp. has increased its exploration acreage in African oil producers, such as Nigeria and Angola, where it believes there is a chance for a production resurgence.

According to Liz Schwarze, vice president of global exploration, West Africa is a region rich in hydrocarbons and has received little attention in comparison to other regions.

Bloomberg reported that Chevron is adding several blocks while some of its counterparts are leaving.

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Last month, Chevron made a different find and purchased a stake in a new exploration block in Nigeria, where oil production has decreased by around half a million barrels per day over the past five years, according to Schwarze.

Additionally, the business acquired two deep-water licenses in neighboring Equatorial Guinea, another producer that is in decline.

“The proof is in the action,” Schwarze said in an interview in Cape Town.

After decades of operations, oil giants have either shifted their capital elsewhere or left the continent entirely, causing the largest crude producers to drop well below their peak output levels.

According to Schwarze, Chevron's quest for resources on the continent still heavily relies on frontier exploration. This month, it began digging a well in Egypt, and in December, it intends to begin an exploration campaign in Namibia.

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Chevron added deepwater blocks 49 and 50 in Angola, which left the Organization of Petroleum Exporting Countries last year when its crude production fell.

Report shows top 5 oil-producing countries in Africa

Legit.ng reported that recent data from the Organisation of Petroleum Exporting Countries (OPEC) shows that global oil prediction for 2024 remains the same.

Oil production declined in most OPEC members in Africa during the first quarter of 2024, except for Algeria, Libya, and Congo.

The report says Nigeria produced the most oil for April despite falling short of its output.

Source: Legit.ng