ExxonMobil plans $10B investment in Nigerian deepwater oil to boost production to 180,000 bpd
ExxonMobil is moving closer to a $10 billion investment decision in Nigeria, Africa’s largest oil producer, aiming to expand its deepwater oil production in the country to 180,000 barrels per day (bpd).
The company first announced the plan in September 2024 following a meeting in New York between its executives and Nigeria’s Vice President Kashim Shettima.
The initial phase focuses on an infill drilling campaign at the Usan deepwater asset, valued at approximately $1 billion, leveraging existing floating production storage and offloading (FPSO) capacity.
ExxonMobil has already allocated 30% of the funds and expects to formalize its investment readiness within the coming months.
During an interview with Nigerian newspaper THISDAY, Jagir Baxi, Chairman and Managing Director of ExxonMobil’s Nigerian affiliate, confirmed the company is nearing a Final Investment Decision (FID).
The project will require new subsea connections, wells, and infrastructure in addition to using the current Usan FPSO.
ExxonMobil has been collaborating closely with key stakeholders, including the Nigerian Content Development and Monitoring Board (NCDMB), the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), and the Nigerian National Petroleum Corporation (NNPC Ltd), to meet all regulatory and technical requirements.
Baxi highlighted that the project benefits from a clear and valuable resource base, allowing production to start relatively quickly compared to a brand-new greenfield development.
The $1 billion Usan infill campaign is expected to run throughout the next year, with production beginning within months of the campaign start.
Looking ahead, ExxonMobil plans to develop the Owowo deepwater project, with an estimated cost of $7–8 billion.
Owowo is projected to have 20–40 wells, producing 250,000 barrels of liquids and up to 100 million cubic feet of gas per day, making it significantly larger than previous tiebacks such as Erha North and Bonga North.
ExxonMobil describes Owowo as a strategic, large-scale project positioned to strengthen its deepwater portfolio in Nigeria, alongside the ongoing Usan infill campaign.
