From Adanna Nnamani, Abuja
Oil major ExxonMobil has disclosed plans to commit multi-billion-dollar investments to deepwater projects in Nigeria, indicating its renewed confidence in the country’s upstream oil and gas sector.
The company made this known during a visit to the headquarters of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) in Abuja, as part of activities marking 20 years of the Erha deepwater project.
A statement from the Commission quoted Senior Vice President, Deepwater, ExxonMobil Upstream Company, Hunter Farris, as saying that the company was encouraged by Nigeria’s improved investment climate, prompting it to deepen its footprint in the country.
He noted that the Production Sharing Contract (PSC) for the Erha field had been extended to 2042, adding that the company was undertaking extensive life-extension works to restore the Erha Floating Production Storage and Offloading (FPSO) vessel to optimal performance.
Farris further disclosed that, beyond Erha, ExxonMobil was positioning for additional investments in the Usan field, which would involve drilling a number of new wells, as well as advancing plans for the Owowo deepwater project.
According to him, the Owowo project holds an estimated one billion barrels of developed resources and is projected to cost between $7 billion and $8 billion, with the company targeting a Final Investment Decision (FID) as early as next year.
He also highlighted the Bosi oil and gas field, located near Erha, as another major opportunity, noting that it could attract between $15 billion and $16 billion in fresh capital if developed with new FPSO infrastructure and pipelines.
According to him, “There is about a billion barrels of developed resources, of between $7bn and $8bn dollars, that we are progressing, looking into an FID as early as next year.”
The ExxonMobil executive described the proposed investments as a clear indication that the company is fully re-engaging with Nigeria’s oil sector, adding that it is aligning with what he termed a “golden age” or rejuvenation of deepwater operations in the country.
Farris commended recent regulatory reforms in Nigeria, stating that they had significantly enhanced the ease of doing business and created a more attractive environment for large-scale investments.
In response, the Commission Chief Executive of NUPRC, Oritsemeyiwa Eyesan, welcomed the company’s renewed commitment, describing the planned investments as a positive development for the industry.
She assured ExxonMobil of the Commission’s support, noting that the regulator remains committed to encouraging and safeguarding petroleum investments that align with Nigeria’s national interest.
Eyesan expressed optimism over the prospect of new Final Investment Decisions in the near term, stating that such developments would further strengthen Nigeria’s position in the global deepwater oil market.
“To hear that FIDs are likely next year is very exciting, and rest assured, we are willing to support you,” the NUPRC boss stated.
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