American oil giant ExxonMobil is moving closer to committing about $10 billion to major deep-water oil projects in Nigeria, in partnership with its joint venture collaborators.
The company says it plans to begin with an infill drilling programme at the Usan deep-water field, a project valued at over $1 billion. ExxonMobil has already committed about 30 per cent of the investment and is expected to formally declare readiness in the coming months.
Beyond that, the company has outlined a broader plan to significantly boost its production in Nigeria—from around 100,000 barrels per day to 250,000 barrels per day within five years.
Speaking on the development, the Chairman and Managing Director of ExxonMobil’s Nigerian affiliate, Jagir Baxi, explained that the Usan project is driven by new seismic data showing additional recoverable resources. Although part of an existing field, the project will require new wells, subsea infrastructure, and connections to the current Floating Production, Storage and Offloading (FPSO) facility.
According to him, the company is working closely with key stakeholders, including the Nigerian National Petroleum Company Limited, regulators, and partners to finalise all requirements needed before taking a Final Investment Decision (FID).
Another major focus is the Owowo deep-water field, which is expected to cost between $7 billion and $8 billion to develop. ExxonMobil operates the asset with a 27 per cent stake, alongside partners such as Chevron Nigeria Limited and TotalEnergies.
Baxi described Owowo as a large and complex project with significant reserves, potentially larger than several existing deep-water developments. The field is expected to deliver up to 100,000 barrels of oil per day, alongside substantial gas output.
He emphasised that ExxonMobil is focused on ensuring full alignment with partners and regulators before making any final investment announcement, noting that the company prioritises certainty over premature commitments.
If all projects move forward as planned, ExxonMobil expects to unlock about 160,000 barrels per day in additional oil production, while also targeting around 100 million standard cubic feet of gas per day.
Baxi also credited recent policy reforms by the Nigerian government for helping to create a more attractive investment environment, particularly in the deep-water sector.
Overall, the company says its long-term outlook for Nigeria remains strong, with the potential to significantly expand both oil and gas production in the coming years.
