By Tochukwu Bliss, Abuja
The Nigerian unit of U.S. oil major, ExxonMobil, said it plans to invest $1.5 billion in Nigeria’s deepwater exploration and development for the next two years, spanning from the second quarter (Q2) 2025 to 2027.
The planned investment, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) said in a statement Tuesday, will focus mainly on revitalising production at the Usan deepwater oil field, and other planned developments in Owowo and Erha fields.
The announcement was made during a courtesy visit by ExxonMobil’s Managing Director in Nigeria, Shane Harris, to the Commission Chief Executive, NUPRC, Gbenga Komolafe.
“This move counters speculation about Exxon Mobil’s potential withdrawal from Nigeria, instead underscoring a strategic expansion and strengthening of its operational footprint in the country,” NUPC said in its statement.
The NUPRC on its official X handle on Wednesday, also informed of ExxonMobil’s intentions to accelerate development activities in other key deepwater assets, including the Owowo and Erha fields.
It noted these developments are part of a broader strategy to strengthen its operational footprints in Nigeria and support its drive for increased production.
Nigeria aims to reach oil output of 2.4 million barrels a day (mbpd) after dropping to less than half of that level in 2022.
To this end, the country has taken measures to reduce vandalism and improve regulations, as oil majors have divested from onshore and shallow water fields due to security concerns.
Local independent companies who bought these assets from recent bid rounds are expected to raise output.
Long-term commitment
The post on X reads in part: “ExxonMobil has affirmed its long-term commitment to Nigeria’s oil and gas sector with a planned investment of 1.5 billion dollars in deepwater exploration and development.
“This significant financial commitment, which will be implemented between Q2, 2025 – 2027, focuses on revitalising production in the Usan deepwater oil field.
“The company proposed FID in late Q3 2025, subject to final Field Development Plan approval as well as internal and partner funding approvals.”
Recall that in September 2024, ExxonMobil initially planned to invest $10 billion in Nigeria’s deep-water (offshore) oil operations.
Mr. Harris noted that the planned capital deployment reflects ExxonMobil’s confidence in Nigeria’s upstream potential and its dedication to playing a pivotal role in the sector’s growth.
He equally expressed ExxonMobil’s support for the NUPRC’s “Project 1 Million Barrels” initiative, which aims to increase Nigeria’s crude oil production to 2.4mbpd in the medium term.
In his role as the new Chairman of the Oil Producers Trade Section (OPTS), of the Lagos Chamber of Commerce and Industry (LCCI) Mr. Harris expressed his commitment to foster stronger collaboration between industry stakeholders and the NUPRC.
Responding, Mr Komolafe welcomed the announcement, reaffirming the NUPRC’s role as a business enabler and pledging regulatory support to facilitate ExxonMobil’s operations.
He highlighted the importance of sustained collaboration between regulators and investors to meet Nigeria’s production and energy security goals.
The NUPRC boss also spoke on the issue of compliance with the Domestic Crude Supply Obligation and the need for transparent pricing and accountability in the sector.
He said: “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 with the Domestic Crude Supply Obligation.”
