The Nigerian National Petroleum Company (NNPC) has announced a significant hydrocarbon discovery in the shallow waters of the western Niger Delta, boosting the country’s efforts to ramp up its oil reserves.
The discovery was made at the Awodi-07 well, operated by Chevron Nigeria Limited (CNL) in a joint venture with the state-owned NNPC.
In a statement released on Monday, the NNPC said the well had confirmed “significant presence of hydrocarbons” across multiple underground reservoirs. The find is being hailed as a major win for Nigeria as it seeks to reverse years of stagnant production levels and attract fresh investment to its energy sector.
A ‘disciplined’ exploration
Drilling for the Awodi-07 project began in late November 2025 and was concluded in just a few weeks. Officials say the speed and success of the operation reflect a new era of “disciplined exploration” under the country’s recent legal reforms.
“This achievement aligns squarely with our strategic priorities of increasing production and enhancing national energy security,” said Bashir Ojulari, the Group Chief Executive Officer of NNPC Ltd.
The joint venture is a 60-40 split between the NNPC and Chevron, aimed at pushing production toward a target of 146,000 barrels per day.
[Image: Map of the Niger Delta showing the location of the western shallow offshore blocks]
Impact of the Petroleum Industry Act
Energy experts say the discovery is a tangible result of the Petroleum Industry Act (PIA), a landmark law passed to overhaul how Nigeria’s oil wealth is managed.
Udy Ntia, NNPC’s Executive Vice President for Upstream, noted that the discovery was evidence of the “positive impact of the reforms” introduced by the Act, which has helped clarify tax rules and operational standards for international firms like Chevron.
What happens next?
While the discovery is significant, the challenge now shifts to “monetisation”—the process of turning the found oil and gas into actual revenue.
The NNPC says it is working closely with Chevron to move the project from the “discovery” phase to “timely development.” If fast-tracked, the Awodi-07 well could contribute to the government’s goal of boosting national revenue and creating jobs in the local energy service sector.
Analysis: A boost for ‘Big Oil’ confidence
By Segun Ojumu Africa Eye News, Abuja
For years, many major oil companies have been moving away from Nigeria’s onshore fields due to pipeline vandalism and theft, preferring the safety of offshore assets. This successful find in the shallow offshore delta reinforces the “prospectivity” of the area—meaning there is likely still plenty of oil left to find.
However, the real test will be how quickly this can be turned into barrels of oil. Nigeria has a history of long delays between discovery and production. If the NNPC and Chevron can get Awodi-07 flowing by 2027, it will be a significant signal to the global market that Nigeria is back in the game.
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