Chevron is raising its exploration spending by 50% and returning to frontier oil and gas exploration in Africa, South America and the Eastern Mediterranean. Oilprice.com reports the move aims to renew its portfolio with diverse opportunities globally.
Chevron is boosting its exploration budget by 50% compared with last year, according to vice president of exploration Kevin McLachlan. Spending could top $1.5 billion this year, up from just below $1 billion in 2025.
Chevron shifts toward frontier basins
The U.S. supermajor spent years focusing on the U.S. Gulf of Mexico and the Permian shale basin. Now it is targeting Guyana, Angola, Namibia, Nigeria, Guinea-Bissau, Equatorial Guinea, Egypt and the Eastern Mediterranean.
McLachlan told the Wall Street Journal that about 50% of the exploration budget now goes to undeveloped frontier basins, up from 20% a few years ago. Chevron recruited him from TotalEnergies, where he oversaw work on the Venus discovery in Namibia's offshore Orange Basin.
According to McLachlan, speaking to the Financial Times: "We needed to increase the spend because we just didn't have the exposure." He added that the company has increased its spend on seismic data.
More wells planned for 2027
Chevron drilled about 10 exploration wells per year two years ago. Its 2027 program includes 20 exploration wells and possibly up to six appraisal wells, McLachlan said.
CEO Mike Wirth said on the Q2 earnings call that Chevron increased exploration acreage by 35% over the past year. The company has announced discoveries in Nigeria and Angola, and it plans to drill the Nabba-1X exploration well in Namibia by the end of the year.
Why supermajors want more exposure
Supermajors need to add reserves to offset declines at existing assets over time. Analysts at Wood Mackenzie said earlier this year that the Middle East conflict has highlighted the concentration risk of focusing on geopolitically unstable regions.
Exploration budgets also have room to rise, especially in light of the windfall profits companies are collecting this year amid the spike in oil and gas prices following the Iran war.
Source: Oilprice.com
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