Seema Agarwal's Insights: Chevron's Nigeria Bet — A Bold Move in Africa's Oil Renaissance

Chevron is making serious waves in Nigeria’s oil sector. The energy giant, through Seema Agarwal’s strategic lens and broader industry analysis, is positioning itself to capture significant growth opportunities as Africa’s top oil producer opens new frontiers for exploration and development.

Why Chevron is Doubling Down on Nigeria

Currently operating 2.9 million acres of oil and gas properties across Nigeria’s onshore, near-shore, and deepwater zones, Chevron controls premium assets like the Agbami Field deepwater operation and a stake in the Usan Field. But the company isn’t resting on these laurels. The passage of the Petroleum Industry Act has fundamentally reshaped the regulatory landscape, making Nigeria’s upstream sector far more attractive for foreign investors.

Here’s where Chevron’s next move gets interesting: the company has committed to acquiring a 40% stake in two offshore exploration licenses (PPL 2000 and PPL 2001) from TotalEnergies. This acquisition directly enhances Chevron’s exploration firepower and opens new development prospects in promising deepwater zones.

Looking ahead to Nigeria’s 2025 oil licensing round, Chevron has signaled its intention to actively participate. The government plans to auction 50 fields through a fully digital platform, and Chevron sees this as a golden opportunity to strengthen its offshore position and expand its global exploration portfolio.

The company’s investment in infrastructure tells the full story: a drilling rig is scheduled to arrive by late 2026 to assess newly discovered resources near the Agbami hub. This move directly targets the extension of existing asset lifespans and the unlocking of additional reserves from proven zones.

The Broader African Energy Shift

Chevron isn’t alone in recognizing Nigeria’s potential. Other major energy players are reshaping their portfolios as Nigeria tackles production theft and environmental spills while aggressively ramping up output.

Shell has been particularly active. The company snapped up a 12.5% interest in Nigeria’s Bonga field in May 2025, raising its total stake to 55%. The momentum continued as Shell acquired an additional 10% stake, bringing its ownership to 65% and cementing its commitment to deepwater development in the OML 118 Production Sharing Contract area.

TotalEnergies has also been aggressive. In November 2025, the French supermajor clinched agreements with Conoil to acquire a 50% additional stake in the OPL 257 exploration block, bringing its ownership to 90%. The company reported producing 209,000 barrels of oil equivalent per day from Nigeria in 2024 and has similarly expressed strong interest in participating in the 2025 licensing round.

What This Means for Nigeria’s Energy Future

The convergence of Chevron’s strategic expansion, Shell’s deepwater consolidation, and TotalEnergies’ exploration push reflects a fundamental shift in global energy investment patterns. With clearer regulatory frameworks in place and a proven appetite from international oil majors, Nigeria is positioned to become a critical growth engine for these companies’ portfolios.

Chevron’s play in Nigeria—combining its existing operational expertise, acquisition of new exploration rights, and commitment to future licensing rounds—demonstrates that the nation’s oil sector remains foundational to the world’s energy supply. The arrival of new drilling capacity and the systematic exploration of identified resources near established hubs like Agbami signal that Nigeria’s production can sustain meaningful growth for years to come.