A JOINT venture operated by U.S. supermajor Chevron has made an oil and gas discovery offshore Nigeria as international majors bolster exploration amid the top African producer’s efforts to boost hydrocarbon output and offer more favorable terms for investments. 

The Nigerian National Petroleum Company Limited (NNPC Ltd) on Monday commended Chevron Nigeria Limited (CNL), operator of the NNPC Ltd/CNL joint venture, on the successful completion of the Awodi-07 appraisal and exploration well located in the shallow offshore western Niger Delta.

The well was drilled in late 2025 as part of the joint venture’s ongoing efforts to further delineate and unlock hydrocarbon potential within its asset portfolio.

“Results from the well are highly encouraging, confirming a significant presence of hydrocarbons across multiple reservoir zones,” NNPC said in a statement.

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The successful exploration campaign is a major milestone for NNPC Ltd/CNL as it boosts the joint venture’s confidence the area has hydrocarbon potential, the Nigerian state oil firm added.  

NNPC Limited and Chevron Nigeria Ltd work together under a joint venture agreement to operate several oil and gas fields in Nigeria’s Niger Delta. In this partnership, Chevron owns 40 percent and is the operator, while NNPC holds the remaining share.

This is the venture’s third discovery since 2024. The recent exploration successes “complement Chevron’s global exploration strategy to balance infrastructure enabled and frontier activity,” Chevron’s Vice President of Exploration, Mr Kevin McLachlan, said in a separate statement carried by Bloomberg.

Nigeria’s efforts to revitalise its oil industry with reforms and boost oil and gas production have started to pay off.

Last week, Nigerian President Bola Ahmed Tinubu approved the adoption of targeted, investment-linked incentives to support the proposed Bonga South West deepwater offshore oil project by Shell and its partners, the office of the president said after Tinubu met with the supermajor’s Chief Executive Officer, Mr Wael Sawan.

Shell plans to invest $20 billion in the Bonga South West deepwater project, said Special Energy Adviser of the Nigerian president, Ms Olu Arowolo Verheijen.

Shell’s proposed $20 billion investment in Nigeria’s offshore oil sector represents one of the most significant foreign capital commitments to the country in recent years and a strong endorsement of the federal government’s ongoing economic and energy reforms, Economy Post reported.

The investment, anchored on the Bonga South West deepwater project, comes at a critical moment for Nigeria’s economy.  After years of declining oil production, foreign exchange (FX) shortages and investor hesitation, the scale of Shell’s commitment sends a clear message to global markets that Nigeria is regaining credibility as a long-term investment destination.

At a macroeconomic level, the potential impact is substantial. Once operational, Bonga South West is expected to add up to 200,000 barrels per day to national output. This would significantly strengthen Nigeria’s production profile and improve export capacity, with direct implications for foreign exchange inflows, external reserves and fiscal stability.

For the Tinubu administration, which has prioritised market-oriented reforms, including fuel subsidy removal, exchange rate liberalisation and fiscal restructuring, Shell’s decision provides early validation that these policies are beginning to restore investor confidence.

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In practical terms, higher oil output supports government revenues at a time when public finances remain under pressure and infrastructure needs are expanding.

“Nigeria needs all the revenues to bolster the economy, and Shell’s investment is welcome at this time,” said Lagos-based economist, Mr Chima Nweze, who advises oil and gas firms on sustainability.

Beyond headline numbers, the investment also carries important multiplier effects. Large offshore projects stimulate demand across multiple sectors, including engineering, logistics, maritime services, fabrication, insurance and financial services. Over the project lifecycle, thousands of jobs are expected to be created, while Nigerian firms stand to benefit from procurement opportunities under local content policies.