ExxonMobil to Invest $1.5B in Nigeria's Offshore Oilfields

Investment Overview - Exxon Mobil Corporation (XOM) plans to invest $1.5 billion in Nigeria's offshore oil sector to revitalize deepwater production, specifically targeting the Usan oilfield located in offshore block OML 138, approximately 70 kilometers from the coast [1] - The investment is scheduled to be implemented between 2025 and 2027, with a final investment decision (FID) expected by the end of Q3 2025, contingent on the approval of the Field Development Plan and securing necessary financing [2] Usan Oilfield Details - The Usan field was discovered in 2002, approved for development in 2008, and began production in 2012, currently featuring around 34 subsea production and injection wells supported by eight subsea manifolds [3] - The new capital will be utilized to enhance output and improve operational efficiencies at the Usan field [3] Strategic Alignment - The investment aligns with Nigeria's goal to increase crude oil output to 2.4 million barrels per day (bpd) by 2026, as part of the "Project 1 Million Barrels" initiative led by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) [5] - ExxonMobil is also pursuing the development of other deepwater assets, including the Owowo and Erha fields, as part of a broader strategy to support Nigeria's production targets [4] Industry Challenges - Nigeria's upstream sector has faced challenges such as persistent oil theft and pipeline sabotage, which have led to major operators exiting the country and frequent force majeure declarations at key export terminals [6] - By focusing on deepwater developments, which are less vulnerable to such disruptions, ExxonMobil aims to play a crucial role in Nigeria's efforts to recover lost production volumes [6]