ExxonMobil has reaffirmed its long-term commitment to Nigeria’s oil and gas industry with a planned investment of $1.5 billion in deepwater exploration and development projects, a move set to bolster confidence in the country’s upstream potential. According to the 9am News report, the investment will be carried out between Q2 2025 and 2027, focusing primarily on revitalizing production at the Usan deepwater oil field.
The oil giant has indicated that a Final Investment Decision (FID) is expected by late Q3 2025, pending final approval of the Field Development Plan (FDP) and funding clearances from internal stakeholders and partners. Beyond the Usan field, ExxonMobil also plans to accelerate development activities in other major deepwater assets, including the Owowo and Erha fields. These projects are part of ExxonMobil’s broader strategy to strengthen its operational footprint in Nigeria and help boost the country’s crude oil output.
The announcement came during a courtesy visit by ExxonMobil’s Managing Director in Nigeria, Mr. Shane Harris, to the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) Chief Executive, Engr. Gbenga Komolafe, as stated on the NUPRC’s official website.
Mr. Harris emphasized that the planned capital expenditure reflects ExxonMobil’s strong confidence in the long-term viability of Nigeria’s upstream sector and its strategic importance in the global energy market. He also expressed the company’s support for the NUPRC’s “Project 1 Million Barrels” initiative, which targets increasing Nigeria’s oil production capacity to 2.4 million barrels per day in the medium term.
Engr. Komolafe welcomed ExxonMobil’s renewed commitment, describing it as a timely and critical boost for Nigeria’s upstream sector. He stressed that the NUPRC will continue to provide a stable and transparent regulatory framework to attract investment, adding that investor confidence is key to the success of the Petroleum Industry Act (PIA) reforms.
During the visit, both parties also discussed compliance with the Domestic Crude Supply Obligation (DCSO) and the implementation of Section 109 of the PIA, which introduces the “willing buyer, willing seller” principle for domestic crude transactions.
ExxonMobil’s renewed capital injection is expected to generate jobs, support technology transfer, and increase Nigeria’s national oil production, ultimately enhancing foreign exchange earnings and improving the country’s energy security. The company’s expanded commitment directly counters earlier speculation about its potential divestment or exit from Nigeria and marks a significant step in strengthening the country’s upstream oil and gas landscape.
In his role as Chairman of the Oil Producers Trade Section (OPTS), Mr. Harris pledged to work closely with the NUPRC and other industry stakeholders to address regulatory challenges and unlock further investment opportunities in Nigeria’s oil and gas sector.
In 2024, ExxonMobil announced plans to invest $10 billion in Nigeria’s deepwater oil operations. Meanwhile, TotalEnergies has revealed intentions to divest its minority stake in a major onshore joint venture, following a similar move by Shell.
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