ExxonMobil to invest $1.5 billion to revive Nigerian deepwater oilfield

Exxon Mobil Corp. is set to invest $1.5 billion in Nigeria’s offshore oil sector, part of a major push to revitalize the country’s deepwater production. 

According to Nigeria’s oil regulator, the investment will be directed toward rejuvenating output at the Usan oilfield, located on offshore block OML 138 in the eastern Niger Delta, about 70 kilometers from the coast.

The investment is scheduled to roll out between 2025 and 2027. ExxonMobil aims to reach FID by the end of the third quarter of 2025, subject to approval of the field development plan and the securing of internal and partner financing by the same quarter.

The Usan field, discovered in 2002, was approved for development in 2008 and began production in 2012. It currently includes approximately 34 subsea production and injection wells, supported by eight subsea manifolds. The new capital will be used to reinvigorate the field’s output and enhance operational efficiencies.

During a meeting with Nigerian Upstream Petroleum Regulatory Commission (NUPRC) chief Gbenga Komolafe, ExxonMobil’s Nigeria managing director Shane Harris emphasized that the Usan investment is part of a broader strategy. ExxonMobil is also pursuing the development of other deepwater assets, including the Owowo and Erha fields. Reportedly, some portion of the $1.5 billion investment will be applied to the development of these fields.

Komolafe praised the commitment, highlighting its alignment with the NUPRC’s “Project 1 Million Barrels” initiative, which seeks to increase Nigeria’s crude output to 2.4 million barrels per day (b/d) by 2026. He noted that such private sector backing is vital for achieving the country's ambitious energy targets.

The Nigerian government is targeting a 1 million b/d increase in oil production by December 2026, up from the current level of 1.75 million b/d.