ExxonMobil reaffirms confidence in Nigeria with billion-dollar investment in oil exploration

Oil company ExxonMobil has confirmed plans to invest $1.5 billion in the exploration and development of deepwater fields in Nigeria. The financial commitment, to be made between the second quarter of 2025 and 2027, is focused on reviving production at the Usan deepwater oil field. 

ExxonMobil Executive Director Shane Harris announced the investment plans during a meeting with Gbenga Komolafe, chief executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).

The company plans to make a final investment decision at the end of the third quarter of this year, subject to approval of the field's final development plan and internal and partner financing. The production restart follows the accelerated development of other deepwater oil fields, Owowo and Erha.

According to Harris, the planned capital investment reflects ExxonMobil's confidence in Nigeria's production potential and its commitment to playing a key role in the industry's growth.

"This move runs counter to speculation that ExxonMobil might leave Nigeria and instead highlights the strategic expansion and strengthening of its operational presence in the country," Harris said.

Nigeria plans a major increase in oil production

The West African country recently launched an initiative called “Project 1 Million Barrels of Oil Per Day” (from the English Project 1 Million Barrels of Oil Per Day, 1MMBOPD). The initiative aims to increase daily oil production while addressing the country's low energy output. It is intended to strengthen Nigeria's position in the global energy market and boost production and federal government revenues.

The initiative's results are already beginning to emerge. Since the start of 2025, Nigeria has seen significant fluctuations in oil production. In January 2025, output peaked at approximately 1.737 million barrels per day, its highest level in more than three years. By March 2025, however, production had fallen to approximately 1.6 million barrels per day.

The ExxonMobil executive expressed support for the 1MMBOPD initiative. Its goal is to increase Nigeria's oil production to 2.4 million barrels per day over the medium term.

Komolafe, in turn, pledged regulatory support to facilitate ExxonMobil's operations. He stressed the importance of continued cooperation between regulators and investors in achieving Nigeria's production and energy security goals. Discussions also addressed compliance with domestic crude supply obligations and the need for transparent pricing.