ExxonMobil Commits $1.5 Billion to Deepwater Investment as NUPRC Pledges Regulatory Support

In a decisive move that dispels persistent rumors of its planned exit from Nigeria, global energy giant ExxonMobil has announced a $1.5 billion investment in deepwater exploration and development within the country. The announcement was made during a strategic visit by ExxonMobil’s Managing Director in Nigeria, Mr. Shane Harris, to the Commission Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Mr. Gbenga Komolafe.

According to the NUPRC, this investment will be deployed between the second quarter of 2025 and 2027, with a primary focus on revitalizing the Usan deepwater oil field. The plan also includes accelerated development of other key assets such as the Owowo and Erha deepwater fields. The company has projected a Final Investment Decision (FID) by Q3 2025, contingent upon the approval of the Field Development Plan (FDP), as well as internal and partner funding authorizations.

This development signals ExxonMobil’s renewed confidence in Nigeria’s upstream oil and gas potential and reaffirms its long-term commitment to the country’s energy future. Speaking during the meeting, Mr. Harris emphasized that the capital deployment reflects the company’s belief in the strategic value of Nigeria’s hydrocarbon resources and its intent to play a significant role in enhancing production capacity. Importantly, this pledge also supports Nigeria’s broader energy goals, particularly the NUPRC’s “Project 1 Million Barrels” initiative, which targets increasing national crude oil output to 2.4 million barrels per day in the medium term. Harris assured the commission of ExxonMobil’s alignment with this vision, noting that the investment would boost Nigeria’s global competitiveness in the upstream sector.

Responding to the announcement, NUPRC’s Chief Executive, Mr. Gbenga Komolafe, welcomed ExxonMobil’s show of confidence and described the commission as a facilitator of investment. He reiterated the regulator’s commitment to creating a stable, transparent, and investor-friendly operating environment. The meeting also addressed crucial policy areas, including compliance with the Domestic Crude Supply Obligation (DCSO) and enforcement of Section 109 of the Petroleum Industry Act (PIA), which centers on the “willing buyer, willing seller” market principle. Komolafe emphasized that these frameworks are necessary to balance investor profitability with national energy security.

In the face of increasing global energy transition pressures, ExxonMobil’s decision to double down on Nigeria’s deepwater resources is seen as a significant endorsement of the country’s remaining hydrocarbon value. It also offers hope for reversing the recent trend of international oil companies scaling down or divesting their Nigerian operations due to regulatory uncertainty and operational bottlenecks. With this bold move, ExxonMobil not only repositions itself as a key player in Nigeria’s upstream future but also sets a strong precedent for other international stakeholders contemplating long-term investment in the region.