ExxonMobil’s $1.5 Billion Investment: A Reaffirmation of Commitment to Nigeria’s Deepwater Potential
ExxonMobil, a global energy giant, has announced a substantial investment of $1.5 billion in Nigeria’s deepwater oil exploration and development, signaling a renewed commitment to the country’s energy sector. This investment, slated for execution between the second quarter of 2025 and 2027, primarily targets revitalizing production at the Usan deepwater oil field. A final investment decision (FID) is anticipated in late Q3 2025, contingent upon approvals for the Field Development Plan and securing funding from both internal sources and partners. This commitment underscores ExxonMobil’s confidence in Nigeria’s upstream potential and counters previous speculations about the company’s potential divestment from the country. Instead, it signifies a strategic move to strengthen its operational footprint and contribute to Nigeria’s ambition of increased oil production.
This significant investment forms part of ExxonMobil’s broader strategy to bolster its presence in Nigeria’s oil and gas sector. Beyond the Usan field, the company has also expressed intentions to accelerate development activities in other key deepwater assets, including the Owowo and Erha fields. These initiatives align with ExxonMobil’s long-term vision for Nigeria and its support for the country’s drive to boost production. The planned investment will not only enhance production from existing fields but also contribute to exploration efforts, potentially unlocking new reserves and further solidifying Nigeria’s position as a major oil producer.
The announcement of this investment follows a meeting between ExxonMobil’s Managing Director in Nigeria, Mr. Shane Harris, and the Commission Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Engr. Gbenga Komolafe. During this visit, Mr. Harris, also the newly appointed Chairman of the Oil Producers Trade Section, emphasized ExxonMobil’s support for NUPRC’s "Project 1 Million Barrels" initiative. This initiative aims to elevate Nigeria’s crude oil production to an ambitious 2.4 million barrels per day in the medium term, contributing significantly to the country’s economic growth and energy security.
Mr. Harris’s dual role as ExxonMobil’s Managing Director and Chairman of the Oil Producers Trade Section positions him to foster stronger collaboration between industry players and the NUPRC. This collaborative approach is crucial for navigating the complexities of the Nigerian oil and gas sector and ensuring alignment between industry operations and regulatory frameworks. The NUPRC, in its role as a business enabler, has pledged its regulatory support to facilitate ExxonMobil’s operations, recognizing the importance of a strong partnership between regulators and investors in achieving Nigeria’s production and energy security goals.
The discussions between ExxonMobil and the NUPRC also touched on critical aspects of the Nigerian oil and gas industry, including compliance with the Domestic Crude Supply Obligation (DCSO). This obligation mandates that a certain percentage of crude oil produced in Nigeria be allocated to the domestic market, ensuring local refineries have access to feedstock and contributing to national energy security. The emphasis on transparent pricing and accountability further underscores the commitment of both ExxonMobil and the NUPRC to promoting a fair and efficient operating environment within the sector. The NUPRC reiterated its commitment to implementing Section 109 of the Petroleum Industry Act (PIA), which addresses the principle of "willing buyer, willing seller" in crude oil transactions, ensuring a transparent and market-driven approach to domestic crude allocation.
ExxonMobil’s investment serves as a vote of confidence in Nigeria’s oil and gas sector, highlighting the country’s continued attractiveness for international investment despite challenges. This commitment is expected to generate positive ripple effects throughout the Nigerian economy, creating jobs, boosting government revenues, and supporting local communities. Furthermore, the collaboration between ExxonMobil and the NUPRC sets a positive precedent for future partnerships between international oil companies and the Nigerian government, fostering a more stable and predictable investment climate. The focus on revitalizing existing fields and exploring new opportunities demonstrates a long-term perspective, positioning Nigeria for sustained oil production and economic benefits in the years to come. This investment also aligns with global energy trends, as deepwater exploration and production become increasingly important in meeting the world’s growing energy demands.
