By Obiabin Onukwugha
Oil giant, Chevron Nigeria Limited, has announced the completion of the appraisal and exploration of Awodi-07, a Niger Delta shallow offshore well.
This feat was accomplished last December by a joint venture between the multinational oil firm and the Nigeria National Petroleum Company Limited
The well, which reached a total depth of 12,420 feet in less than three weeks, according to authorities, has been plugged and suspended after wireline and fluid sampling operations.
In a statement at the weekend, the Chairman and Managing Director of Chevron Nigeria/Mid Africa Region, Jim Swartz, said the discovery breaks down into 310 feet of appraisal reservoirs, matching pre-drill expectations, and 365 feet across six hydrocarbon-bearing exploration sands, unlocking significant development potential in an area where existing infrastructure can accelerate production timelines.
“This success demonstrates the strength of our exploration program and the value of collaboration with our senior partner, NNPC,” he said.
The Chevron chief stated that the partnership underscores a strategic shift toward cooperative development following the passage of the Petroleum Industry Act (PIA), which streamlined fiscal terms and regulatory processes that had deterred investment for over a decade.
Chevron’s Vice President for Exploration, Kevin McLachlan, on his part, emphasised that all three discoveries complement Chevron’s global exploration strategy to balance infrastructure-enabled and frontier activity.
According to McLachian, the approach prioritises near-field discoveries that can leverage existing facilities, reducing development costs and compressing time-to-market—critical factors as international oil companies face pressure to improve capital efficiency.
The timing proves significant for Nigeria, which has struggled to meet OPEC production quotas amid pipeline theft, regulatory delays, and competition from deepwater projects in Guyana and Suriname.
The Petroleum Industry Act, enacted in 2021 after two decades of legislative wrangling, introduced tax incentives for frontier basins, clarified host community obligations, and established clearer timelines for regulatory approvals.
The NNPCL/CNL Joint Venture emphasised continued collaboration with regulators and stakeholders to ensure compliance, signalling the partnership approach that has become central to Nigeria’s investment pitch as it competes globally for exploration capital in an energy transition era.
