Exxon Mobil Corp. plans to invest $1.5 billion in a deepwater oil field in Nigeria as Africa's top producer looks to boost output, according to the nation's regulator.
Nigeria aims to boost its oil output to 2.4 million barrels per day, recovering from a low of less than half that volume in 2022. The country has implemented measures to address vandalism and streamline regulations, encouraging investment. Major oil companies have shifted focus from onshore and shallow water fields due to security issues, with local independent firms expected to increase production as they acquire divested assets.
Exxon’s investment reflects its ongoing commitment to Nigeria’s oil sector. Although the government noted in September 2024 that Exxon had considered up to $10 billion for offshore projects, the $1.5 billion allocation for Usan underscores a focused approach. The NUPRC stated on Tuesday: “This move counters speculation about Exxon Mobil’s potential withdrawal from Nigeria, instead underscoring a strategic expansion and strengthening of its operational footprint in the country.”
A final investment decision for the Usan field is anticipated in the third quarter of 2025, pending approvals of the field development plan and agreement from partners, as per the NUPRC. This step highlights Exxon’s strategic efforts to enhance Nigeria’s deepwater oil production capacity.
The initiative aligns with Nigeria’s broader goal of revitalizing its oil industry, a key driver of economic growth. Exxon’s continued engagement, alongside regulatory improvements, supports the country’s efforts to attract investment and ensure sustainable production increases in its energy sector.
