The Awodi-07 well was drilled under the NNPC Ltd / Chevron Nigeria Limited joint-venture, in which NNPC Ltd holds a 60% stake, while Chevron owns 40%. Drilling operations commenced in late November 2025 and were completed by mid-December 2025. This development comes at a strategic moment for Nigeria, as the country seeks to restore oil production capacity, strengthen public revenues and rebuild international investor confidence in its energy sector.

According to an official statement issued by Andy Odeh, NNPC Ltd’s Director of Corporate Communications, and dated 26 January 2026, all drilling activities were conducted safely, efficiently and in full compliance with approved operational, environmental and regulatory standards.

Following comprehensive well testing, data acquisition and logging, the well was safely secured, marking the end of the drilling campaign. Results confirmed the presence of significant hydrocarbons across multiple reservoir zones, validating the asset’s commercial potential. NNPC Ltd described the outcome as a major milestone for the joint-venture, strengthening confidence in the Awodi asset and confirming the geological attractiveness of the western Niger Delta basin.

Aligned with Nigeria’s strategic energy priorities

Reacting to the announcement, NNPC Ltd Group Chief Executive Officer, Bashir Ojulari, commended Chevron Nigeria Limited for its performance.

The success of the Awodi-07 well further strengthens the robustness of the NNPC Ltd/CNL joint-venture and our shared commitment to responsibly developing Nigeria’s hydrocarbon resources,
Ojulari

He added that the achievement aligns fully with NNPC Ltd’s strategic priorities, including: increasing oil production, strengthening national energy security, and delivering sustainable value to the Nigerian people. Similarly, NNPC Ltd Executive Vice President, Upstream, Udy Ntia, highlighted the broader significance of the discovery.

This discovery underscores the value of rigorous exploration programmes, strong partnerships and the positive impact of reforms introduced under the Petroleum Industry Act,

he said. Ntia also noted that both partners are committed to advancing the opportunity toward timely development and monetisation.

A key lever for national production growth

Through this joint-venture, NNPC Ltd and Chevron Nigeria Limited aim to scale up production across their asset portfolio.

The partnership targets production of approximately 146,000 barrels of oil per day, directly supporting: government revenues, export stability, and national energy supply. This ambition comes as Nigeria’s oil output gradually recovers after years of disruption caused by oil theft, pipeline vandalism and underinvestment, particularly in onshore assets. Offshore developments such as Awodi-07 are increasingly viewed as lower-risk and more stable contributors to national production.

Economic benefits for Nigeria

Stronger public revenues and foreign exchange inflows. Oil accounts for over 90% of Nigeria’s export earnings and remains the country’s primary source of foreign exchange. A sustained increase in production supports : stronger foreign exchange reserves, improved balance of payments, and greater macroeconomic stability, including pressure relief on the naira.

Job creation and local content development. The development of Awodi-07 is expected to generate direct and indirect employment, particularly in offshore services, logistics, engineering, maintenance and local subcontracting. It also supports Nigeria’s local content policy, which seeks to deepen indigenous participation across the oil and gas value chain.

Enhanced regional and global standing

By consolidating production capacity, Nigeria strengthens its position within OPEC, improves its ability to defend production quotas and maintains its status as Africa’s leading oil producer.

Improved regulatory and fiscal framework. The implementation of the Petroleum Industry Act (PIA) has reshaped Nigeria’s oil and gas sector, enhancing transparency, governance and fiscal clarity. These reforms have significantly improved Nigeria’s attractiveness to international oil companies and institutional investors, particularly in the upstream segment.

Discoveries such as Awodi-07, combined with shallow offshore development costs, offer competitive return potential, especially in a relatively supportive global oil price environment.

A proven joint-venture model. The NNPC Ltd / Chevron Nigeria Limited joint-venture demonstrates a well-established risk-sharing model between the Nigerian state and a major international operator with strong technical expertise. This structure sends a positive signal for future upstream investments across Nigeria’s oil and gas landscape.

Despite these positive developments, key challenges remain: relatively high production costs, security risks in parts of the Niger Delta, and Nigeria’s continued structural dependence on hydrocarbons. Addressing these risks will be essential to ensure that discoveries like Awodi-07 translate into long-term, inclusive economic value.

The successful drilling of the Awodi-07 well goes beyond a technical achievement. It represents a clear signal of Nigeria’s oil sector recovery, underpinned by strong partnerships, regulatory reforms and renewed exploration momentum.