Chevron Eyes Eastern Mediterranean for Oil Discovery

Chevron is expanding its presence in the Mediterranean, with plans to begin seismic research in waters off Greece later this year. This move will help the company assess hydrocarbon potential and could eventually lead to test drilling.

The news came from Greek Environment and Energy Minister Stavros Papastavrou, who met with a Chevron executive during his visit to the US for UN meetings. The official agreed that exploration could begin this year. Chevron was awarded four offshore leases to explore for oil around Greece earlier this year.

The company already has assets in the Mediterranean, including two gas-producing fields off Israel and one in Cyprus. It also operates two exploration blocks in Egypt and has an agreement to explore for oil in Libya. With higher oil prices expected due to a global shortage of refining capacity, Chevron's revenue and free cash flow will likely benefit.

Chevron reported net income of $12 billion in the second quarter, almost 400% higher than the year-ago quarter. The company beat Wall Street's earnings estimates by $0.50 a share, at $6.06. The stock is up about 34% year-to-date, with an average analyst price target of around $224, representing a 10% increase over the current price.