ExxonMobil has announced plans to commit billions of dollars to deepwater oil projects in Nigeria, reflecting renewed confidence in the country’s upstream petroleum sector.
The company revealed this during a visit to the headquarters of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) in Abuja, as part of events marking the 20th anniversary of the Erha deepwater project.
The information was contained in a statement issued on Thursday by the NUPRC spokesperson, Eniola Akinkotu.
Speaking during the visit, the Senior Vice President, Deepwater, ExxonMobil Upstream Company, Mr Hunter Farris, said the company was encouraged by Nigeria’s improved investment climate, which informed its decision to “renew our vows to Nigeria”.
He explained that the Production Sharing Contract for the Erha project had been extended to 2042, noting that ExxonMobil was carrying out extensive life-extension work aimed at restoring the Erha Floating Production Storage and Offloading vessel to optimal performance.
Beyond the Erha field, Farris disclosed that the company was considering fresh investment opportunities in the Usan field, which would involve “drilling a handful of wells”.
He also pointed to the Owowo deepwater project as another potential area for development.
Regarding Owowo, he said, “There are about a billion barrels of developed resources, of between $7bn and $8bn, that we are progressing, looking into an FID as early as next year.”
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He further highlighted the Bosi oil and gas field, located near Erha, noting that it could attract between $15bn and $16bn in new capital investment if developed alongside a new FPSO and pipeline infrastructure.
Farris added that these planned investments show that the company is “getting back in business and we’re serious about what we’re doing”.
He also described Nigeria as entering what he called a golden age of deepwater development, saying ExxonMobil is positioning itself to benefit from the renewed momentum in the sector.
According to him, the country’s improved regulatory framework has made the business environment more attractive and supportive of investment in oil and gas.
Responding, the Commission Chief Executive of the NUPRC, Mrs Oritsemeyiwa Eyesan, welcomed ExxonMobil’s renewed commitment to Nigeria’s petroleum industry.
She said, “To hear that FIDs are likely next year is very exciting, and rest assured, we are willing to support you,” Eyesan stated.
She added that the commission would continue to promote and protect investments in the sector, particularly those that align with national interests.