Fresh indications have emerged that Nigeria’s deepwater oil sector may be on the cusp of a major investment rebound as ExxonMobil unveiled plans for multi-billion dollar projects, including a potential Final Investment Decision as early as 2027.
The oil giant disclosed this during a high-level visit to the Nigerian Upstream Petroleum Regulatory Commission in Abuja, where it briefed regulators on its renewed upstream strategy and long-term commitment to Nigeria.
The development comes amid sustained efforts by the Federal Government to reposition the oil and gas sector following years of declining investment, regulatory uncertainty, and capital flight.
A statement issued by the Commission’s Head of Media and Corporate Communications, Eniola Akinkuotu, said the visit also coincided with activities marking 20 years of the Erha deepwater project, one of Nigeria’s flagship offshore assets.
Speaking during the engagement, the Senior Vice President, Deepwater, ExxonMobil Upstream Company, Hunter Farris, said the company was encouraged by recent improvements in Nigeria’s investment climate, prompting a strategic recommitment.
He declared, “We are encouraged by the improved investment climate in Nigeria, and that is why we are here to renew our vows to Nigeria.”
Farris disclosed that ExxonMobil had secured an extension of the Production Sharing Contract for the Erha field to 2042 and had commenced extensive life-extension works to restore the Floating Production Storage and Offloading vessel to optimal performance.
“The Production Sharing Contract on Erha has been extended to 2042, and we are doing a lot of life extension work to get the Erha FPSO back to maximum performance,” he said.
Beyond Erha, the company is also advancing new drilling activities at the Usan field while progressing plans for the Owowo deepwater project, which is emerging as one of Nigeria’s most significant upcoming developments.
On Owowo, Farris revealed, “There is about a billion barrels of developed resource, of between $7bn and $8bn project, that we are progressing, looking into an FID as early as next year.”
Investment of that scale would represent one of the largest upstream commitments in Nigeria in recent years and could signal renewed investor confidence in the country’s offshore potential.
Even more significant is the Bosi field, located adjacent to Erha, which ExxonMobil said could unlock a fresh wave of capital inflows if fully developed.
Farris explained, “The Bosi oil and gas field has the potential of attracting between $15bn and $16bn if we move forward with a new FPSO and associated pipelines.”
He stressed that the scale of the proposed investments underscores ExxonMobil’s renewed focus on Nigeria’s deepwater assets.
According to him, “These investments show that we are getting back in business and we are serious about what we are doing.”
He added that the company was aligning with what he described as a new phase in Nigeria’s offshore industry.
“We are keying into the golden age of deepwater, or the rejuvenation of deepwater in Nigeria,” Farris said.
The ExxonMobil executive also commended recent regulatory reforms, noting that they have significantly improved the ease of doing business in the country’s oil and gas sector.
Responding, the Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission, Oritsemeyiwa Eyesan, described the company’s renewed investment outlook as a positive signal for the industry.
She said, “To hear that Final Investment Decisions are likely next year is very exciting, and rest assured that we are willing to support you.”
Eyesan reiterated the Commission’s commitment to creating a stable and investor-friendly environment while ensuring that petroleum investments deliver value to Nigerians.
“The Commission will continue to encourage and safeguard petroleum investments, especially those that are in the interest of the Nigerian people,” she added.
Nigeria’s deepwater segment has historically attracted some of the largest upstream investments due to its large reserves and relatively lower exposure to security challenges compared to onshore and shallow water operations.
However, investment slowed in recent years due to uncertainties around fiscal terms, delayed project approvals, and global energy transition pressures.
The passage of the Petroleum Industry Act in 2021 and subsequent regulatory reforms have begun to reverse this trend, with operators now signalling renewed interest in long-term offshore developments.
ExxonMobil’s planned investments, potentially exceeding $20bn across multiple assets, could serve as a catalyst for broader industry revival, boost crude oil output, and strengthen Nigeria’s foreign exchange earnings if successfully executed.
