KEY POINTS
- Chevron’s 2026 exploration budget will exceed $1.5 billion, up 50%.
- Africa, including Nigeria, Angola and Namibia, is a key exploration target.
- The company plans 20 exploration wells and up to six appraisal wells in 2027.
US energy giant Chevron is increasing its oil and gas exploration spending by 50% in 2026 as it pursues new discoveries across Africa, South America and the Eastern Mediterranean.
The company’s exploration budget is expected to exceed $1.5 billion this year, up from just under $1 billion in 2025, as it seeks to replenish reserves and identify new opportunities for production growth.
According to Oilprice.com, Chevron plans to drill 20 exploration wells and potentially six appraisal wells in 2027, expanding a programme that previously involved about 10 exploration wells annually.
Africa becomes a major exploration focus
Chevron is targeting opportunities in Nigeria, Angola, Namibia, Guinea-Bissau and Equatorial Guinea, alongside projects in Guyana, Egypt and the Eastern Mediterranean.
The company has increased its exploration acreage by 35% over the past year and has announced discoveries in Nigeria and Angola.
It also plans to drill the Nabba-1X exploration well in Namibia by the end of 2026 as part of a wider campaign across the region.
Kevin McLachlan, Chevron’s vice-president of exploration, said the company had increased spending on seismic data to identify and assess potential drilling prospects.
Around 50% of its exploration budget is now directed towards undeveloped frontier basins, compared with about 20% a few years ago, according to McLachlan.
Middle East tensions drive diversification
Chevron’s renewed focus on frontier exploration comes amid heightened geopolitical tensions and disruptions to oil and gas shipments linked to the Iran war.
The disruption of flows through the Strait of Hormuz has underscored the risks of relying heavily on supplies from a single region.
Oil and gas companies are also seeking new discoveries to replace reserves depleted through production at existing fields.
Chevron chief executive Mike Wirth said the company had built one of its strongest exploration opportunity portfolios in years, following an expansion of its acreage and recent discoveries.
The increased spending signals a broader effort to diversify Chevron’s resource base and establish new sources of future production as global energy demand evolves.
