ExxonMobil has reaffirmed its long-term commitment to Nigeria’s upstream oil sector with plans to invest $1.5 billion in offshore deepwater exploration and development over a two-year period starting from the second quarter of 2025.
The announcement dispels recent speculation regarding the company’s potential divestment from the Nigerian market.
The capital expenditure will be directed toward reviving production in the Usan deepwater oil field with further investments earmarked for the development of other offshore assets, including the Owowo and Erha fields.
The planned investment underscores the energy major’s strategy to reinforce its operational footprint in Nigeria’s high-potential offshore basins.
Shane Harris, Managing Director of ExxonMobil Nigeria, disclosed the development during a courtesy visit to Gbenga Komolafe, the Commission Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).
Harris stated that a Final Investment Decision (FID) is targeted for late Q3 2025, contingent on regulatory approval of the Field Development Plan and internal funding clearance among joint venture partners.
“This investment reflects our confidence in Nigeria’s upstream potential and our commitment to supporting the country’s production targets and energy security agenda,” Harris said.
The proposed capital deployment aligns with the NUPRC’s “Project 1 Million Barrels” initiative, which aims to raise Nigeria’s daily crude oil output to 2.4 million barrels in the medium term.
Harris reiterated ExxonMobil’s support for this objective, describing it as a critical enabler for sustainable growth in the sector.
In his response, Komolafe welcomed the investment and emphasised the Commission’s role as a facilitator of upstream growth.
He assured ExxonMobil of the regulator’s full cooperation and reaffirmed the agency’s dedication to transparent governance and investor-friendly regulation.
“We are committed to creating a regulatory environment that promotes operational efficiency and investment confidence. Sustained collaboration with partners like ExxonMobil is essential to achieving our national targets,” Komolafe said.
The meeting also addressed compliance with the Domestic Crude Supply Obligation and the implementation of Section 109 of the Petroleum Industry Act (PIA), which outlines the “willing buyer, willing seller” framework for crude transactions in the domestic market.
ExxonMobil’s renewed capital commitment follows Seplat Energy’s ongoing efforts to acquire its shallow water assets, highlighting a broader sector trend of portfolio realignment rather than withdrawal.
The deepwater segment, where ExxonMobil remains active, continues to attract long-term investment interest due to its scale and reserve potential.
With declining output from mature fields and persistent underinvestment in recent years, Nigeria’s oil production has struggled to meet both domestic demand and export obligations.
Analysts expect that capital injections such as ExxonMobil’s will help restore upstream capacity and bolster macroeconomic stability through increased foreign exchange earnings.
