U.S. oil major ExxonMobil has announced a substantial investment of $1.5 billion aimed at rejuvenating Nigeria’s deepwater oil production, focusing on the Usan oilfield located in offshore block OML 138 in the eastern Niger Delta.
The announcement was made during a courtesy visit by ExxonMobil Nigeria Managing Director Shane Harris to the Commission Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Engr. Gbenga Komolafe.
Speaking at the meeting, Mr. Harris emphasized that the planned capital deployment reflects ExxonMobil’s confidence in Nigeria’s upstream petroleum prospects, despite market uncertainties.
“This investment highlights our commitment to Nigeria’s energy sector and reinforces our role in driving growth and innovation in deepwater exploration.”
Shane Harris, ExxonMobil Nigeria Managing Director
The investment will be implemented between Q2 2025 and 2027, focusing on revitalizing production in the Usan deepwater oil field.
ExxonMobil scheduled a final investment decision (FID) for late Q3 2025, contingent upon approvals for the Field Development Plan and funding agreements with internal and external partners.
Beyond Usan, ExxonMobil has outlined plans for accelerated development in several key deepwater fields, including Owowo and Erha, strengthening its footprint in Nigeria’s offshore sector.
This decision counters speculation about ExxonMobil’s potential withdrawal from Nigeria, instead signaling a strategic expansion aimed at increasing production efficiency and reinforcing operational capabilities.
In addition to ExxonMobil’s investment plans, Mr. Harris, who was recently appointed Chairman of the Oil Producers Trade Section (OPTS), emphasized his intention to foster stronger collaboration between industry stakeholders and the NUPRC.
By reinforcing engagement between private-sector operators and regulators, ExxonMobil aims to promote a stable investment climate, mitigate operational risks, and contribute to Nigeria’s long-term energy development strategy.
Alignment with Nigeria’s ‘Project 1 Million Barrels’ Initiative
ExxonMobil has also pledged support for NUPRC’s “Project 1 Million Barrels” initiative, which seeks to increase Nigeria’s crude oil production to 2.4 million barrels per day in the medium term.
“ExxonMobil’s commitment to this initiative aligns with Nigeria’s broader energy goals.
“Sustained investment from international oil companies is critical for achieving long-term production targets.”
Engr. Gbenga Komolafe, Commission Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC)
The NUPRC Chief Executive reaffirmed the Commission’s role as a business enabler, pledging regulatory support to facilitate ExxonMobil’s operations.
Engr. Komolafe underscored the importance of sustained collaboration between regulators and investors, stressing that such partnerships are essential for Nigeria’s energy security and industry growth.
During discussions, both parties addressed compliance with the Domestic Crude Supply Obligation, aiming to improve market transparency and accountability.
“The Commission is committed to the implementation of Section 109 of the Petroleum Industry Act (PIA), which defines the willing buyer, willing seller framework.
“We urge producers to comply with the Domestic Crude Supply Obligation.”
Engr. Gbenga Komolafe, Commission Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC)
ExxonMobil’s $1.5 billion investment in Nigeria’s deepwater oil sector is a major boost to the country’s energy security.
Reviving fields like Usan and accelerating development at Owowo and Erha will raise Nigeria’s oil production. This supports the national goal of hitting 2.4 million barrels per day under the “Project 1 Million Barrels” initiative.
The commitment from a global major like ExxonMobil signals confidence in Nigeria’s regulatory environment. This could attract more investment, enabling diversified energy projects, including renewables.
ExxonMobil’s planned $1.5 billion investment in Nigeria’s deepwater oil sector will boost the country’s energy security by increasing crude production, supporting local fuel supply through the Domestic Crude Supply Obligation, strengthening export revenues, and attracting further investment.
With strategic projects targeting deepwater production growth, alignment with Nigeria’s national crude oil objectives, and enhanced regulatory cooperation, ExxonMobil remains poised to play a key role in shaping the country’s energy landscape through 2027 and beyond.
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