- ExxonMobil is nearing a $10 billion investment decision to expand deep-water oil production in Nigeria.
- The initial phase includes an infill drilling campaign at the Usan deep-water asset, with 30% of project funds already allocated.
- The company is working with Nigerian regulatory and industry bodies to ensure all requirements for a Final Investment Decision (FID) are met.
- ExxonMobil’s plans feature the large Owowo deep-water project, which could comprise 20–40 wells and greatly increase oil and gas output.
The company first touted the deal back in September 2024, following a meeting in New York between some of its executives and Nigeria’s vice president, Kashim Shettima.
After the meeting, the company revealed that it would be sinking $10 billion into deep-water oil projects in Nigeria with the intent to increase its oil production in the West African country to 180,000 barrels per day (bpd).
The initial phase of this investment will involve an infill drilling campaign at the Usan deep-water asset, an oil production facility, currently valued at $1 billion.
Exxon has already allocated 30% of these funds and expects to formalize its investment readiness within several months.
So far, the company has revealed that it has only inched closer to a decision, but has yet to fully commit to the projects.
During an interview with the Nigerian newspaper THISDAY, the Chairman and Managing Director of ExxonMobil Affiliate in Nigeria, Mr. Jagir Baxi, stated that ExxonMobil does plan to “declare the investment ready in a short while.”
He made the revelation at the sidelines of an event, commemorating 20 years of continuous oil production at the Erha oil producing asset by Esso Exploration and Production Nigeria Limited (EEPNL), Exxon’s affiliate and operating company in Nigeria.
The managing director clarified that the project would necessitate new subsea connections, wells, and infrastructure in addition to utilizing the current Usan FPSO capacity and capability.
He further indicated that the company has been engaging with key stakeholders, including the Nigerian Content Development and Monitoring Board (NCDMB), the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), and the Nigerian National Petroleum Corporation (NNPC Ltd) in its capacity as concessionaire, alongside partners in OML 138.
These collaborative efforts are aimed at satisfying all regulatory and technical prerequisites necessary to reach a Final Investment Decision (FID).