Investment to boost production in Usan, Owowo, and Erha fields and support NUPRC’s Project 1 Million Barrels initiative
By Douglas Maha with agency reports
Lagos, Nigeria – May 7, 2025 — Global energy giant ExxonMobil has announced a major $1.5 billion investment in Nigeria’s oil and gas sector, focusing on deepwater exploration and development between 2025 and 2027. The investment underscores the company’s long-term commitment to Nigeria’s upstream oil industry and supports efforts to boost national crude oil output.
ExxonMobil Targets Usan, Owowo, and Erha Deepwater Fields
The bulk of the investment will be directed at revamping production from the Usan deepwater oil field. ExxonMobil also plans to accelerate development activities in the Owowo and Erha fields—critical assets in Nigeria’s offshore oil landscape.
A Final Investment Decision (FID) is expected by Q3 2025, subject to the approval of the Field Development Plan (FDP) and funding clearance from internal and external partners.
Strategic Endorsement of Nigeria’s Upstream Potential
The announcement came during a courtesy visit by Mr. Shane Harris, Managing Director of ExxonMobil Nigeria, to Engr. Gbenga Komolafe, Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC). According to a statement published on the NUPRC website, Harris emphasised that the capital commitment reflects ExxonMobil’s confidence in the long-term viability of Nigeria’s upstream sector and its strategic global energy value.
“This investment demonstrates our strong belief in Nigeria’s resource potential and the importance of working collaboratively with regulators to deliver energy responsibly,” said Harris.
Support for Project 1 Million Barrels Initiative
ExxonMobil also supported NUPRC’s “Project 1 Million Barrels” initiative, which aims to raise Nigeria’s daily crude oil production to 2.4 million barrels in the medium term. Mr. Harris highlighted the importance of regulatory cooperation to meet these targets and reiterated the company’s readiness to contribute to national production goals.
In response, Engr. Komolafe lauded the announcement, calling it “timely and strategic.” He reaffirmed the Commission’s commitment to creating a stable, transparent, and investor-friendly environment under the Petroleum Industry Act (PIA).
Regulatory and Industry Collaboration Strengthened
Discussions during the visit also addressed critical regulatory issues such as compliance with the Domestic Crude Supply Obligation (DCSO) and the implementation of Section 109 of the PIA, which supports a “willing buyer, willing seller” model for domestic crude transactions.
Mr. Harris, who recently assumed the role of Chairman of the Oil Producers Trade Section (OPTS), pledged to strengthen collaboration between operators and the NUPRC to resolve bottlenecks and unlock additional investments.
Economic Impact and Broader Investment Outlook
The $1.5 billion injection is expected to spur job creation, technology transfer, and higher crude output, contributing to Nigeria’s improved foreign exchange earnings and energy security.
This latest move builds on ExxonMobil’s broader deepwater strategy, which includes a previously announced $10 billion investment plan for Nigerian offshore oil operations revealed in 2024.
