ExxonMobil, one of the leading International Oil Companies (IOCs) with strong interest in Nigeria’s hydrocarbon resources industry, has hinted of its plans to invest $1.5 billion in the nation’s deepwater exploration and development projects.
The planned investment scheduled for execution from the second quarter (Q2) of this year to 2027, will focus primarily on revitalizing production at the Usan deepwater oil field to demonstrate the company’s confidence in the country’s upstream investment-return potential.
Already, the management of ExxonMobil has hinted that a Final Investment Decision (FID) on the planned investment is expected to be taken late Q3 2025, pending the final approval of the Field Development Plan (FDP), along with internal and partner funding approvals.
A statement on the NUPRC’s website on Tuesday indicated that the investment announcement was made by ExxonMobil’s Managing Director in Nigeria, Shane Harris, during his courtesy visit to the Commission Chief Executive Officer of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Engr. Gbenga Komolafe, in his office in Abuja.
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During the visit, Harris also said that in addition to the Usan field, the company would accelerate development activities in other key deepwater fields, including the Owowo and Erha fields as part of the company’s broader strategy to improve its operations in Nigeria and support the country’s drive for increased crude oil production.
According to him, the planned investment underscores ExxonMobil’s optimism about the long-term viability of the country’s upstream sector and its strategic importance in the global energy landscape.
In addition, Harris also expressed ExxonMobil’s support for NUPRC’s “Project 1 Million Barrels” initiative, which is designed to raise Nigeria’s crude oil production capacity to 2.4 million barrels per day (mbp/d) in the medium term.
The industry expert harped on the importance of strategic collaboration between the hydrocarbon resources industry operators and the regulators, particularly the NUPRC, in achieving the Federal Government’s target.
In his remarks, the Chief Executive of the NUPRC welcomed the ExxonMobil’s investment plan, describing it as timely and crucial for Nigeria’s upstream sector’s growth.
Komolafe reiterated the Commission’s commitment to facilitating a stable and transparent regulatory environment in view of the importance of investor confidence in the successful implementation of the Petroleum Industry Act (PIA) reforms.
The discussions between the duo during the courtesy visit focused on critical sectoral issues, including compliance with the Domestic Crude Supply Obligation (DCSO) and the enforcement of Section 109 of the PIA, which introduces the principle of “willing buyer, willing seller” for crude oil transactions in the domestic market.
Harris, who is also the new Chairman of the Oil Producers Trade Section (OPTS), promised to use the platform to foster stronger collaboration between industry players and the NUPRC by primarily focusing on addressing regulatory challenges and unlocking further investment opportunities in the sector.
It would be recalled that last year, ExxonMobil unveiled its plan to invest $10 billion in Nigeria’s deep-water (offshore) oil operations in order to tap from the abundant opportunities in the sector for improved returns on its investments.
