ExxonMobil Commits $1.5bn To Nigeria’s Deepwater Oil Development

Energy giant ExxonMobil has announced a significant $1.5 billion investment in Nigeria’s deepwater exploration and development activities over the next two years, commencing in the second quarter of 2025.

This substantial financial commitment, revealed late Tuesday, signals ExxonMobil’s continued confidence in Nigeria’s offshore oil potential and aims to revitalise production in the key Usan deepwater oil field.

Shane Harris, ExxonMobil’s Managing Director in Nigeria, disclosed the investment plans during a courtesy visit to Gbenga Komolafe, the Commission Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).

The $1.5 billion capital expenditure, slated for implementation between the second quarter of 2025 and 2027, will primarily focus on boosting output from the Usan deepwater asset.

Furthermore, the company indicated that this investment is in addition to ongoing efforts aimed at the accelerated development of other significant deepwater fields, including Owowo and Erha.

ExxonMobil has proposed a Final Investment Decision (FID) for these projects in late Q3 2025.

This decision, however, remains contingent upon final approval of the Field Development Plan by the relevant authorities, as well as internal funding approvals within ExxonMobil and its partners.

According to Harris, this planned capital deployment unequivocally demonstrates ExxonMobil’s strong belief in Nigeria’s upstream sector and its commitment to playing a pivotal role in its future growth.

He emphasised that this move directly counters recent speculation regarding a potential withdrawal of ExxonMobil from Nigeria, instead highlighting a strategic expansion and reinforcement of the company’s operational presence within the country.

Harris also conveyed ExxonMobil’s support for the NUPRC’s ambitious “Project 1 Million Barrels” initiative, which aims to significantly increase Nigeria’s crude oil production to 2.4 million barrels per day in the medium term.

Gbenga Komolafe, the Chief Executive of the NUPRC, warmly welcomed ExxonMobil’s investment announcement.

He reaffirmed the NUPRC’s commitment to acting as a business enabler within the Nigerian upstream sector and pledged the commission’s full regulatory support to facilitate ExxonMobil’s operational activities.

Komolafe underscored the critical importance of sustained collaboration between regulatory bodies and investors in achieving Nigeria’s oil production and energy security objectives.

Discussions during the high-level visit also addressed crucial aspects of the Nigerian oil sector, including compliance with the Domestic Crude Supply Obligation and the imperative for transparent pricing and accountability across the value chain.

The NUPRC chief reiterated the commission’s commitment to the full implementation of Section 109 of the Petroleum Industry Act (PIA), which addresses the principles of willing buyer, willing seller in crude oil transactions, urging producers to adhere to these regulations.

ExxonMobil’s significant investment plan signals a positive outlook for Nigeria’s deepwater oil sector.

This capital injection is expected to contribute significantly to boosting the nation’s crude oil production capacity and will be closely monitored by energy analysts and investors for its impact on Nigeria’s energy security and revenue generation.

The collaboration between ExxonMobil and the NUPRC, as highlighted during the meeting, will be crucial in ensuring the successful execution of these deepwater projects and achieving Nigeria’s ambitious oil production targets.