Oil giant moves closer to final investment decisions as it plans to more than double production to 250,000 bpd……
American energy giant ExxonMobil is edging closer to committing up to $10 billion in new deepwater oil projects in Nigeria, signaling renewed confidence in the country’s upstream sector.
The investments, being developed alongside joint venture partners, are expected to significantly expand production capacity and unlock new offshore reserves over the next few years.
At the center of the plan is an initial $1 billion infill drilling campaign at the Usan deepwater field, where early-stage work is already underway. The company has committed roughly 30% of the required capital and is preparing to declare readiness for a Final Investment Decision (FID) in the coming months.
Speaking in Lagos, ExxonMobil’s Nigeria Chairman and Managing Director, Jagir Baxi, said the company is nearing a critical milestone, with key technical and regulatory requirements falling into place.
The Usan project is designed to tap additional reserves identified through seismic studies. Although part of an existing asset, it will require new wells, subsea infrastructure, and connections to the current Floating Production, Storage and Offloading (FPSO) facility.
Once operational, the project is expected to deliver new production within months of execution, offering a relatively quick boost compared to greenfield developments.
Beyond Usan, ExxonMobil is advancing plans for the much larger Owowo deepwater field one of Nigeria’s most significant undeveloped offshore assets. The project is estimated to require between $7 billion and $8 billion in investment and is being positioned as the company’s flagship development in the country.
Owowo holds an estimated 500 million to 1 billion barrels of oil and will involve a complex development structure, including up to 40 wells and a long-distance tie-back to existing infrastructure.
ExxonMobil operates the asset with a 27% stake, alongside partners including Chevron Nigeria Limited, TotalEnergies E&P Nigeria Limited, Nexen Petroleum Deepwater Nigeria Limited, and Nigerian National Petroleum Company Limited.
According to Baxi, Owowo is significantly larger and more complex than recent tieback projects such as Bonga North, underscoring both its scale and strategic importance.
Together, these projects form the backbone of ExxonMobil’s long-term growth plan in Nigeria. The company aims to increase its oil production from about 100,000 barrels per day to as much as 250,000 barrels per day within five years.
This growth is expected to come from a mix of brownfield expansions and new developments. The Usan and Erha fields are projected to add around 60,000 barrels per day combined, while the Owowo project alone could contribute up to 100,000 barrels per day, alongside significant gas output.
Baxi also highlighted plans to unlock up to 100 million standard cubic feet per day of gas, supported by new pipeline infrastructure linking offshore fields to onshore facilities.
While timelines for final investment decisions on both Usan and Owowo have not been formally announced, ExxonMobil indicated that visible early-stage commitments such as procurement of long-lead equipment and infrastructure setup will signal progress ahead of official approvals.
The company emphasized that any FID declaration will only come once all partners and stakeholders are fully aligned, maintaining its track record of executing only fully de-risked projects.
Importantly, ExxonMobil credited recent policy reforms by the Nigerian government for improving the investment climate. Measures such as Presidential Executive Directives aimed at streamlining contracting processes and enhancing local content have helped move projects closer to execution.
As global energy markets remain volatile, the planned investments could play a critical role in boosting Nigeria’s oil output, strengthening government revenues, and reinforcing the country’s position in the deepwater segment.
If delivered as planned, ExxonMobil’s next wave of projects may mark one of the most significant upstream investment cycles in Nigeria in recent years.
