ExxonMobil Invests $1.5 Billion in Nigeria’s Deepwater Oil Growth

ExxonMobil has announced plans to inject $1.5 billion into Nigeria’s deepwater oil sector, marking a renewed commitment to the country’s energy industry. The investment, scheduled to roll out between the second quarter of 2025 and 2027, will primarily target the revitalization of production at the Usan deepwater oil field.

A Final Investment Decision (FID) is anticipated by late Q3 2025, pending regulatory approvals, partner agreements, and internal funding clearance.

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The energy giant also revealed intentions to fast-track development in other major offshore assets, including the Owowo and Erha fields, as part of a broader effort to strengthen its presence in Nigeria’s offshore oil landscape and support national production goals.

The commitment was disclosed during a strategic meeting between ExxonMobil Nigeria’s Managing Director, Shane Harris, and the Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Engr. Gbenga Komolafe.

Harris reaffirmed ExxonMobil’s belief in Nigeria’s long-term potential, noting the country’s strategic role in the global energy supply chain. This fresh wave of investment helps dispel rumors about the company’s possible exit and instead signals an expansion of operations in the region.

Harris also threw the company’s weight behind the NUPRC’s “Project 1 Million Barrels” initiative, which targets a medium-term boost in crude oil output to 2.4 million barrels per day. He emphasized the need for close coordination between operators and regulators to reach this ambitious target.

Komolafe welcomed the development, describing it as a major step toward revitalizing Nigeria’s upstream sector. He reiterated the Commission’s dedication to ensuring a predictable, investor-friendly regulatory environment to support ongoing reforms under the Petroleum Industry Act (PIA).

During the meeting, the parties discussed issues such as compliance with the Domestic Crude Supply Obligation (DCSO) and the operationalization of Section 109 of the PIA, which enforces a “willing buyer, willing seller” framework for domestic crude transactions.

As the newly appointed Chairman of the Oil Producers Trade Section (OPTS), Harris pledged to use the platform to foster stronger partnerships between oil producers and the Commission. He emphasized the importance of regulatory stability and open dialogue to unlock future investments in Nigeria’s energy sector.

This capital infusion is expected to create jobs, facilitate technology transfers, and boost Nigeria’s oil output, thereby enhancing foreign exchange inflows and energy stability.

ExxonMobil’s latest announcement follows a broader investment strategy in Nigeria, which includes a previously disclosed $10 billion commitment to deepwater oil development. Meanwhile, companies like TotalEnergies and Shell have recently announced plans to divest their interests in certain onshore joint ventures.