Sopuruchi Onwuka

ExxonMobil, the world’s largest publicly traded oil company by market capitalization, has unveiled plans to invest more than $25 billion in a series of deepwater oil developments and enhanced recovery projects in Nigeria.

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The company’s Senior Vice President for Deepwater at ExxonMobil Upstream Company, Hunter Farris, disclosed this during a visit to the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), where discussions focused on expanding the company’s footprint in Nigeria’s offshore sector.

Farris said the planned investments have been made possible by improvements in Nigeria’s business environment and ExxonMobil’s renewed long-term commitment to the country.

Industry reports indicate that recent policy reforms, including Executive Order 9 signed by President Bola Tinubu, have significantly reduced operational bottlenecks in deepwater activities, boosting investor confidence.

ExxonMobil, which is marking 20 years of continuous production from its flagship Erha deepwater field, also confirmed that the field’s Production Sharing Contract has been extended to 2042. This extension provides a foundation for life-extension projects aimed at restoring the Erha Floating Production Storage and Offloading (FPSO) facility to peak performance.

Beyond Erha, the company is advancing plans for additional investments in other key assets. These include the Usan field, where drilling of several new wells is under consideration, and the Owowo deepwater project.

Speaking on Owowo, Farris noted that the field holds an estimated one billion barrels of recoverable resources and could require between $7 billion and $8 billion in capital investment. A Final Investment Decision (FID) could be reached as early as next year.

He also highlighted the Bosi oil and gas field, located near Erha, as another major opportunity. Development of Bosi could attract between $15 billion and $16 billion in fresh investment, particularly if it involves a new FPSO and pipeline infrastructure.

“These investments demonstrate that we are getting back in business and serious about our operations in Nigeria,” Farris said, adding that ExxonMobil is positioning itself to benefit from what he described as a “rejuvenation” or new phase of growth in Nigeria’s deepwater sector.

He commended the Nigerian government for regulatory reforms that have improved ease of doing business and created a more attractive investment climate.

In response, the Chief Executive of NUPRC, Mrs Oritsemeyiwa Eyesan, welcomed ExxonMobil’s renewed commitment, expressing optimism about the potential for new project approvals.

“To hear that Final Investment Decisions may be taken as early as next year is very encouraging. Be assured of our full support,” she said.

The CCE reiterated the Commission’s commitment to fostering a stable and investor-friendly environment while ensuring that petroleum developments deliver value to the Nigerian people.