Chevron, an oil and gas company, has extended its Usan and Agbami oilfield leases in Nigeria until 2042.
According to the company’s 2022 annual report, the move will provide the US oil giant with long-term access to the assets.
Chevron, which has a 67.3% interest in the Agbami oilfield, also revealed it is increasing its focus on short-cycle projects with shorter lead times and quicker returns on investment.
The company said the development is part of a strategic shift towards more agile operations and a focus on profitability in the prevailing market environment.
The extension of deep-water licences in Nigeria and the Republic of Congo contributed 36 million barrels to the company’s African asset base.
Chevron disclosed that around $0.5bn was spent on offshore development and natural gas projects in Nigeria, Angola, and the Republic of Congo.
The report added that external factors beyond the company’s control can affect its ability to increase oil and gas reserves.
“Apart from acquisitions, the company’s ability to add proved reserves can be affected by events and circumstances that are outside the company’s control, such as delays in government permitting, partner approvals of development plans, changes in oil and gas prices, OPEC constraints, geopolitical uncertainties, and civil unrest. Supplemental Information on oil and gas producing activities,” the report said.
