ExxonMobil has reaffirmed its commitment to Nigeria’s oil and gas sector with a planned investment of $1.5 billion in deepwater exploration and development between Q2 2025 and 2027. This significant capital injection is aimed at revitalizing production at the Usan deepwater oil field, with additional development efforts in other key assets such as Owowo and Erha fields.
The investment plan was disclosed during a courtesy visit by ExxonMobil Nigeria’s Managing Director, Mr. Shane Harris, to Engr. Gbenga Komolafe, the Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC). According to a statement on the Commission’s website, a Final Investment Decision (FID) for the Usan project is expected by late Q3 2025, pending approval of the Field Development Plan (FDP) and other funding clearances.
Mr. Harris emphasized that the proposed investment reflects ExxonMobil’s long-term confidence in Nigeria’s upstream potential and the strategic relevance of the country in the global energy landscape. The company’s renewed interest comes amid growing concerns about international oil companies exiting Nigeria’s upstream market.
In contrast to such divestment trends, ExxonMobil’s announcement reinforces its presence and signals expansion rather than withdrawal. This development is also expected to bolster job creation, technology transfer, and foreign exchange earnings, while supporting Nigeria’s energy security goals.
Mr. Harris also pledged ExxonMobil’s support for the NUPRC’s “Project 1 Million Barrels” initiative, which seeks to raise Nigeria’s crude oil production to 2.4 million barrels per day in the medium term. He stressed the need for continued collaboration between operators and regulators to realize this goal.
Welcoming the announcement, NUPRC’s CCE Engr. Komolafe hailed ExxonMobil’s renewed investment as timely and crucial for achieving upstream growth. He reaffirmed the Commission’s commitment to maintaining a transparent and investor-friendly regulatory environment, especially under the Petroleum Industry Act (PIA).
During the meeting, both parties discussed compliance with the Domestic Crude Supply Obligation (DCSO) and the enforcement of Section 109 of the PIA, which introduces a “willing buyer, willing seller” framework for domestic crude oil transactions.
Mr. Harris, who also serves as Chairman of the Oil Producers Trade Section (OPTS), stated he will use the platform to strengthen industry-regulator collaboration and address challenges hindering sector growth.
In 2024, ExxonMobil had also revealed a broader plan to invest $10 billion in Nigeria’s deepwater operations over time. Meanwhile, companies like TotalEnergies and Shell have continued to divest from onshore oil joint ventures, highlighting a shift in operational focus within the sector.