ExxonMobil to Inject $1.5bn into Nigeria’s Deepwater Oil Assets, Reaffirms Long-Term Commitment

ExxonMobil confirmed its long-term commitment to the Nigerian oil and gas sector with a planned $ 1.5 billion investment in projects of water exploration and development projects, a step that indicates confidence in the country's upward potential and reflects the transfer of regulation and investment dynamics and investment.

The investment, which has been scheduled for the controlling between Q2 2025 and 2027, primarily targets the revival of production in the field of USAN's depths. A final investment decision (FID) is expected by the late Q3 2025, which awaits the final approval of the Field Development Plan (FDP), including the approval of the internal and joint adventure partner.

Beyond the USAN, basic oil oil has revealed that it will accelerate development activities in other major water ownership, including the Owowo and Erha fields. These efforts are part of Exxonmobil's wider approach to combine its position with the offshore basin of Nigeria and restore the country's drive to ramp up oil manufacture.

The announcement was made at a beauty visit by the Managing Director of Exxonmobil in Nigeria, G. Shane Harris, the Commission Chief Executive (CCE) of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Engr. Gbenga Komolafe, according to a statement published on the NUPRC website on Tuesday.

Mr. Harris said the planned capital expenditure reflects ExxonMobil's belief in the long -term flexibility of the Nigeria sector and its strategic value in the emerging global energy scene.

Tied to NNPCL shake-up

Industry experts have taught recent changes in leadership to the Nigerian National Petroleum Company Limited (NNPCL) as a critical factor that contributed to unlocking ExxonMobil's revised promise. Mele Kyar's Ouster as Group Chief Executive Officer and the broader reorganization of the National Oil Company under the Administration Ball Tinubu has been credited for cleaning a major obstacle to new investments.

“You were told that Exxon was waiting for Mele and his staff to leave before they started commissioning for their arms offshore,” said energy analyst Kelvin Emmanuel, responding to the development. “This one is for USAN, the next one is for Owowo, and that will have a sum and CNOOC as PSC partners.”

Kari's tenure in the NNPCL has been -dogged by the controversy and opacity of the regulation, along with several international oil companies reported that it has delayed critical investment decisions. His removal and the subsequent repair under a new management team were interpreted by analysts as a strong reform signal, especially on how to handle joint disputes and water agreements.

ExxonMobil supports NUPRC's 'Project 1 Million Barrels'

Mr. Harris also announced ExxonMobil's alignment with NUPRC's “Project 1 million barrels” initiative-a medium-term aim to raise crude oil production in the country to 2.4 million barrels per day. He emphasized the importance of strategic cooperation between oil makers and regulators to unlock investment and scale production.

Welcome to the announcement, the NUPRC's chief executive described ExxonMobil's revised promise as both timely and critical for the growth of Nigeria's upward space. He noted that strengthening the investor's confidence remains center on the success of the Petroleum Industry Act (PIA) and the Commission's regulation mandate.

Discussions during the visit were also touched by ongoing reforms, including compliance with domestic crude supply obligations (DCSO) and implementation of section 109 of PIA, which introduces a “voluntary consumer, would like to sell” market structure for domestic crude sales.

In his capacity as chairman of the oil producers section of oil producers (OPTS), Mr. Harris has pledged to use the platform to strengthen the cooperation between operators and NUPRCs, focusing on the clarity of regulation and policies that opens additional investments in the stream.

Implications for jobs, work, and exchange of foreigners

Exxonmobil's modified capital in Nigeria's Deepwater segment is expected to stimulate work creation, improve local content content, and transfer driving technology. The anticipated increase in national oil output is expected to help stabilize the Nigerian foreign exchange market, improve fiscal revenues, and bolster energy security.

While the Nigeria's flowing activity has faced the setbacks in recent years due to uncertainty, sabotage, and underinvestment, the revised focus of one of the world's leading oil companies sends a positive signal to other investors.

Development stands in contrast to the growing future concerns of the Nigerian oil and gas sector, where divestment pressure continues. Totalenergies recently confirmed plans to sell the minority stake at a major onshore joint venture, following similar shell motions and other IOCs that exit high-risk, lower margin terrains.