ExxonMobil to invest $1.5 billion in Nigerian oilfield
ExxonMobil has announced plans to invest $1.5 billion in Nigeria’s deepwater oil fields, specifically in the Usan oil field, between the second quarter of 2025 and 2027.
This investment aims to revitalize production in the field and support Nigeria’s goal of increasing its crude oil production to 2.4 million barrels per day.
The planned investment will focus on the Usan deepwater oil field, located on the offshore block OML138 in the eastern Niger Delta, approximately 70 kilometers offshore.
The field, discovered in 2002 and granted development approval in 2008, commenced production in 2012 and currently comprises around 34 subsea production and injection wells connected to eight subsea manifolds. ExxonMobil anticipates reaching a final investment decision (FID) on the Usan project in late Q3 2025, subject to the approval of the Field Development Plan and the securing of necessary internal and partner funding.
Additional Investments
In addition to the Usan field, ExxonMobil also plans to accelerate development activities in other key deepwater assets, including the Owowo and Erha fields. These developments are part of a broader strategy to strengthen its operational footprint in Nigeria and support the country’s drive for increased production.
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ExxonMobil‘s planned investment counters speculation about its potential withdrawal from Nigeria, instead underscoring a strategic expansion and strengthening of its operational footprint in the country. The company has expressed support for the Nigerian Upstream Petroleum Regulatory Commission’s (NUPRC) “Project 1 Million Barrels” initiative, which aims to increase Nigeria’s crude oil production to 2.4 million barrels per day in the medium term.
This investment decision comes at a time when Nigeria is grappling with challenges such as insecurity, oil theft, and a lack of infrastructure, which have made it difficult for the country to attract the investment needed to develop its oil and gas resources. Several international oil companies have sold their assets in Nigeria in the past year, but ExxonMobil’s move signals its commitment to the country’s upstream sector.
During a meeting on Tuesday with Gbenga Komolafe, head of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), ExxonMobil’s Managing Director in Nigeria, Shane Harris, stated that this $1.5 billion commitment is in addition to other planned investments aimed at developing further deepwater assets, including the Owowo and Erha fields.
Officials claim that the planned $1.5 billion investment in Nigeria’s deepwater oil fields is a development that is expected to stimulate job creation, technology transfer, and increase national oil production, ultimately contributing to improved foreign exchange earnings and energy security.
