ExxonMobil has reaffirmed its long-term commitment to Nigeria’s oil and gas sector with a planned $1.5 billion investment in deepwater exploration and development projects, a move that signals renewed confidence in the country’s upstream potential and reflects shifting dynamics in the industry’s regulatory and investment landscape.
The investment, scheduled for rollout between Q2 2025 and 2027, will primarily target the revitalization of production at the Usan deepwater oil field. A Final Investment Decision (FID) is expected by late Q3 2025, pending final approval of the Field Development Plan (FDP), along with internal corporate and joint venture partner approvals.
Beyond Usan, the oil major disclosed it would accelerate development activities in other key deepwater assets, including the Owowo and Erha fields. These efforts are part of ExxonMobil’s broader strategy to consolidate its position in Nigeria’s offshore basin and back the country’s drive to ramp up oil production.
Register for Tekedia Mini-MBA edition 17 (June 9 – Sept 6, 2025) today for early bird discounts. Do annual for access to Blucera.com.
Tekedia AI in Business Masterclass opens registrations.
Join Tekedia Capital Syndicate and co-invest in great global startups.
Register to become a better CEO or Director with Tekedia CEO & Director Program.
The announcement was made during a courtesy visit by ExxonMobil’s Managing Director in Nigeria, Mr. Shane Harris, to the Commission Chief Executive (CCE) of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Engr. Gbenga Komolafe, according to a statement published on the NUPRC’s website on Tuesday.
Mr. Harris stated that the planned capital expenditure reflects ExxonMobil’s belief in the long-term viability of Nigeria’s upstream sector and its strategic value in the evolving global energy landscape.
Tied to NNPCL Shake-up
Industry experts have pointed to recent leadership changes at the Nigerian National Petroleum Company Limited (NNPCL) as a critical factor that helped unlock ExxonMobil’s renewed commitment. The ouster of Mele Kyari as Group Chief Executive Officer and the broader restructuring of the national oil company under President Bola Tinubu’s administration are being credited for clearing a major obstacle to new investments.
“Told you Exxon was waiting for Mele and his crew to leave before they start to commission FID for their offshore arm — ESSO,” said energy analyst Kelvin Emmanuel, reacting to the development. “This one is for Usan, next one will be for Owowo, and that’s the one that will have Total and CNOOC as PSC partners.”
Kyari’s tenure at NNPCL had been dogged by controversy and regulatory opacity, with several international oil companies reportedly delaying critical investment decisions. His removal and the subsequent reorganization under a new management team have been interpreted by analysts as a strong signal of reform, especially in how joint venture disputes and deepwater agreements are handled.
ExxonMobil Backs NUPRC’s ‘Project 1 Million Barrels’
Mr. Harris also expressed ExxonMobil’s alignment with NUPRC’s “Project 1 Million Barrels” initiative — a medium-term goal to raise the country’s crude oil production to 2.4 million barrels per day. He emphasized the importance of strategic collaboration between oil producers and regulators to unlock investment and scale production.
Welcoming the announcement, the NUPRC Chief Executive described ExxonMobil’s renewed commitment as both timely and critical for growth in Nigeria’s upstream space. He noted that fostering investor confidence remains central to the success of the Petroleum Industry Act (PIA) and the Commission’s regulatory mandate.
Discussions during the visit also touched on ongoing reforms, including compliance with the Domestic Crude Supply Obligation (DCSO) and implementation of Section 109 of the PIA, which introduces a “willing buyer, willing seller” market structure for domestic crude sales.
In his capacity as Chairman of the Oil Producers Trade Section (OPTS), Mr. Harris pledged to leverage the platform to strengthen collaboration between operators and the NUPRC, focusing on regulatory clarity and policies that unlock further upstream investments.
Implications for Jobs, Production, and Foreign Exchange
ExxonMobil’s renewed capital injection into Nigeria’s deepwater segment is expected to stimulate job creation, improve local content participation, and drive technology transfer. The projected increase in national oil output is expected to help stabilize Nigeria’s foreign exchange market, improve fiscal revenues, and bolster energy security.
While upstream activity in Nigeria has faced setbacks in recent years due to regulatory uncertainty, sabotage, and underinvestment, the renewed focus by one of the world’s leading oil companies sends a positive signal to other investors.
The development stands in contrast to growing concerns over the future of Nigeria’s onshore oil and gas sector, where divestment pressures persist. TotalEnergies recently confirmed plans to sell its minority stake in a major onshore joint venture, following similar moves by Shell and other IOCs exiting high-risk, lower-margin terrains.