ExxonMobil has affirmed its commitment to Nigeria's oil and gas sector with a substantial investment plan of $1.5 billion earmarked for deepwater exploration and development over the next two years, commencing in the second quarter of 2025. The company made this significant announcement late Tuesday.
This considerable financial outlay, scheduled for implementation between the second quarter of 2025 and 2027, will primarily focus on revitalizing production in the Usan deepwater oil field.
Shane Harris, ExxonMobil’s Managing Director in Nigeria, revealed this development during a courtesy visit to Gbenga Komolafe, the Commission Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).
The company has proposed a Final Investment Decision (FID) by late in the third quarter of 2025, contingent upon final approval of the Field Development Plan as well as internal and partner funding authorizations.
ExxonMobil clarified that this $1.5 billion investment is in addition to ongoing capital deployment aimed at the accelerated development of other significant deepwater assets, including the Owowo and Erha oil fields.
According to Harris, this planned capital injection underscores ExxonMobil’s strong confidence in the untapped potential of Nigeria’s upstream sector and its unwavering dedication to playing a crucial role in the industry's growth trajectory.
"This move counters speculation about ExxonMobil’s potential withdrawal from Nigeria, instead underscoring a strategic expansion and strengthening of its operational footprint in the country," Harris emphasized.
Furthermore, Harris conveyed ExxonMobil’s full support for the NUPRC’s ambitious "Project 1 Million Barrels" initiative, which aims to significantly boost Nigeria’s crude oil production to 2.4 million barrels per day in the medium term.
In response, Commission Chief Executive Komolafe warmly welcomed ExxonMobil's announcement, reiterating the NUPRC’s commitment to acting as a business enabler and assuring the company of the necessary regulatory support to facilitate its operations. He stressed the importance of sustained collaboration between regulatory bodies and investors in achieving Nigeria’s crucial production and energy security objectives.
Discussions during the high-level visit also touched upon critical aspects such as compliance with the Domestic Crude Supply Obligation and the imperative for transparent pricing mechanisms and accountability within the sector.
“The Commission is committed to the implementation of Section 109 of the PIA which addresses the subject of willing buyer, willing seller and we urge producers to comply,” the upstream regulator stated, emphasizing the importance of fair market practices.
ExxonMobil's significant investment commitment signals a strong vote of confidence in Nigeria's deepwater oil prospects and reinforces its long-term presence as a key player in the nation's energy landscape.