Oil giant ExxonMobil has announced it will invest $1.5 billion in Nigeria’s deepwater oil exploration and development over the next two years. The company said this fresh investment will be focused mainly on boosting production at the Usan deepwater oil field, located offshore in Nigeria.
The investment will be rolled out between the second quarter of 2025 and 2027. According to ExxonMobil, a Final Investment Decision (FID) is expected by the third quarter of 2025. However, this decision depends on final approval of the Field Development Plan, as well as clearance from the company’s partners and internal funding arrangements.
This update was shared by ExxonMobil’s Managing Director in Nigeria, Mr. Shane Harris, during a courtesy visit to the head of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Engr. Gbenga Komolafe, in Abuja on Tuesday. The visit was used to confirm the company’s commitment to long-term investments in the Nigerian oil and gas sector.
In a post on its official X (formerly Twitter) account on Wednesday, the NUPRC shared more details from the meeting. It said ExxonMobil is also planning to speed up development work in other major deepwater assets, including the Owowo and Erha oil fields. The company described these actions as part of a wider plan to increase its operations in Nigeria and support the country’s efforts to improve oil production.
ExxonMobil said, “The planned investment of $1.5 billion will be used for deepwater exploration and development, particularly to revitalise the Usan oil field. The FID is expected in late Q3 2025, subject to regulatory approvals and partner agreements.”
This announcement comes just a year after ExxonMobil said it was planning to invest $10 billion in Nigeria’s offshore oil activities. That earlier plan had raised public interest about the company’s future direction in Nigeria, especially with ongoing discussions around the sale of some of its onshore assets.
Mr. Harris said the new investment shows ExxonMobil’s confidence in the Nigerian oil sector and its strong belief in the country’s potential for growth. He added that this move is part of a broader strategy to strengthen the company’s presence in Nigeria rather than exit the country, as some had speculated in the past.
Harris also expressed support for the NUPRC’s “Project 1 Million Barrels” initiative. The project aims to raise Nigeria’s crude oil production to 2.4 million barrels per day in the medium term. He said ExxonMobil would continue to collaborate with the government and other stakeholders to help meet this target.
As the current Chairman of the Oil Producers Trade Section (OPTS), Harris used the visit to pledge stronger cooperation between the group and the NUPRC. He said such partnership is necessary for creating a stable and supportive business environment for oil producers in Nigeria.
In response, Engr. Gbenga Komolafe welcomed the investment news and promised that the NUPRC will continue to act as a business enabler. He assured the company of the Commission’s full regulatory support to ensure smooth operations.
Komolafe also stressed the need for strong cooperation between regulators and investors. He said such partnership is key to meeting Nigeria’s energy and production goals. He reminded operators in the sector to respect the Domestic Crude Supply Obligation (DCSO), which ensures local refineries have access to crude oil at fair and transparent prices.
He said, “The Commission is fully committed to implementing Section 109 of the Petroleum Industry Act, which supports a ‘willing buyer, willing seller’ market system. We urge producers to comply with the DCSO so that local demand can be met and transparency maintained in pricing.”
