ExxonMobil has signalled a potential return to large-scale capital deployment in Nigeria’s upstream sector, with plans for a final investment decision (FID) on its Owowo deepwater project as early as next year.
The indication came during a high-level visit by the oil major to the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) in Abuja, where the company outlined a slate of multi-billion dollar investments spanning several offshore assets.
Speaking during the engagement, Senior Vice President, Deepwater at ExxonMobil Upstream Company, Hunter Farris, framed the renewed push as a strategic recommitment to Nigeria’s oil sector, citing improved regulatory clarity and a more supportive investment climate.
“There is about a billion barrels of developed resource, of between $7bn and $8bn dollar project, that we are progressing, looking into an FID as early as next year,” Farris said of the Owowo project—one of the most significant undeveloped deepwater assets in Nigeria’s portfolio.
Deepwater Revival Anchored on Owowo, Erha and Bosi
ExxonMobil’s renewed activity centres on a cluster of high-value offshore assets that collectively point to a broader deepwater revival.
At the core is the Owowo field, estimated to hold around one billion barrels of recoverable resources. A final investment decision on the project would rank among the largest upstream commitments in Nigeria in recent years, particularly at a time when global oil majors have been recalibrating their exposure to onshore and shallow water assets.
The company is also advancing work on the long-standing Erha deepwater development. The Production Sharing Contract (PSC) for Erha has been extended to 2042, providing long-term fiscal certainty. ExxonMobil is currently undertaking life extension works on the Erha Floating Production Storage and Offloading (FPSO) vessel, aimed at restoring peak production performance.
In parallel, the company is preparing incremental investments in the Usan field, including the drilling of additional wells to sustain output levels.
Beyond these, Farris highlighted the Bosi field—located near Erha—as a potentially transformative opportunity. Development of Bosi could attract between $15 billion and $16 billion in capital expenditure, particularly if it involves a new FPSO and associated pipeline infrastructure.
Taken together, these projects signal a possible shift from capital retrenchment to selective reinvestment in Nigeria’s offshore sector.
Regulatory Stability Driving Investment Confidence
A central theme of ExxonMobil’s engagement with regulators was the improving investment climate under Nigeria’s current petroleum regulatory framework.
Farris noted that reforms and regulatory clarity have materially improved the ease of doing business, creating conditions conducive to long-term capital allocation.
This aligns with broader industry sentiment that the post-Petroleum Industry Act (PIA) environment—combined with more predictable contract terms and fiscal regimes—is beginning to restore investor confidence in Nigeria’s upstream sector.
The company’s reference to a “golden age of deepwater” suggests a strategic pivot toward assets that offer scale, operational stability, and insulation from the security and community challenges that have historically affected onshore operations.
NUPRC Signals Support for Upcoming FIDs
Responding to ExxonMobil’s presentation, NUPRC’s Commission Chief Executive, Mrs. Oritsemeyiwa Eyesan, welcomed the company’s renewed investment pipeline and signalled regulatory backing for upcoming FIDs.
“To hear that FIDs are likely next year is very exciting and rest assured we are willing to support you,” she said.
The Commission reiterated its commitment to safeguarding investments and ensuring that upstream projects align with national economic interests.
This regulatory posture will be critical as Nigeria competes for global upstream capital, particularly in deepwater projects that require long development timelines and substantial upfront investment.
Strategic Implications: Capital Returns to Nigerian Offshore
ExxonMobil’s signals come at a pivotal moment for Nigeria’s oil sector.
International oil companies have, in recent years, divested from onshore and shallow water assets, transferring ownership to indigenous operators. However, deepwater assets—capital-intensive but operationally more secure—remain a core focus for global majors.
The prospective $7–$8 billion Owowo FID, alongside the larger Bosi opportunity, suggests that Nigeria may be entering a new cycle of offshore-led investment growth.
For policymakers, the challenge will be to sustain regulatory consistency and fiscal competitiveness. For investors, the key question is whether Nigeria can convert renewed interest into timely project execution—avoiding the delays that have historically plagued large-scale upstream developments.
If ExxonMobil proceeds as indicated, the Owowo project could become a bellwether for Nigeria’s ability to attract and retain long-term energy capital in an increasingly competitive global landscape.
