ExxonMobil has reiterated its commitment to Nigeria’s oil and gas sector with plans for a substantial investment of $1.5 billion aimed at deepwater exploration and development projects.
Gatekeepers News reports that the development is expected to enhance confidence in the potential of the country’s upstream industry.
The investment is set to take place between the second quarter of 2025 and 2027, with a primary focus on revitalizing production at the Usan deepwater oil field. A Final Investment Decision (FID) is anticipated by late third quarter of 2025, contingent upon the final approval of the Field Development Plan (FDP), alongside necessary internal and partner funding approvals.
Additionally, ExxonMobil has expressed plans to accelerate development activities in other significant deepwater assets, such as the Owowo and Erha fields. These efforts are part of a broader strategy aimed at strengthening the company’s operational presence in Nigeria and supporting the nation’s objectives for increased oil production.
The announcement was made during a courtesy visit by ExxonMobil’s Managing Director in Nigeria, Shane Harris, to the Commission Chief Executive (CCE) of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Engr. Gbenga Komolafe, according to a statement on the NUPRC’s website on Tuesday.
Speaking during the visit, Harris stated that the planned capital expenditure underscores ExxonMobil’s belief in the long-term viability of Nigeria’s upstream sector and its strategic importance in the global energy landscape.
The move by ExxonMobil directly counters speculation regarding its potential divestment or withdrawal from Nigeria and instead marks a significant expansion of its activities in the country.
Harris also expressed ExxonMobil’s support for NUPRC’s “Project 1 Million Barrels” initiative, which aims to boost Nigeria’s crude oil production capacity to 2.4 million barrels per day in the medium term.
He emphasized the importance of strategic collaboration between operators and regulators in achieving this ambitious target.
Responding to the development, the CCE of NUPRC, Engr. Gbenga Komolafe welcomed the announcement, describing ExxonMobil’s renewed commitment as timely and crucial for Nigeria’s upstream growth.
He reiterated the Commission’s role in facilitating a stable and transparent regulatory environment, citing the importance of investor confidence in the success of the Petroleum Industry Act (PIA) reforms.
The discussions during the courtesy visit also touched on key sectoral issues, including compliance with the Domestic Crude Supply Obligation (DCSO) and the enforcement of Section 109 of the PIA, which introduces the principle of “willing buyer, willing seller” for crude oil transactions within the domestic market.
In his new capacity as Chairman of the Oil Producers Trade Section (OPTS), Harris pledged to use the platform to foster stronger collaboration between industry players and the NUPRC, with a focus on addressing regulatory challenges and unlocking further investment opportunities in the sector.
