ExxonMobil plans fresh capital injection in Nigeria’s deep-water oil & gas projects
ExxonMobil is signalling a major return to Nigeria’s offshore frontier, with plans to inject fresh capital into the country’s multi-billion-dollar deep-water assets.
ExxonMobil is signalling a major return to Nigeria’s offshore frontier, with plans to inject fresh capital into the country’s multi-billion-dollar deep-water assets. The energy giant disclosed this strategy during a visit by ExxonMobil Upstream Company deep-water senior vice-president Hunter Farris to the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) headquarters in Abuja on Thursday.
In a statement issued to journalists, Farris expressed satisfaction with Nigeria’s improved investment climate. He noted that the production sharing contract on Erha had been extended to 2042, and the company is performing life extension works to return the Erha floating production storage and offloading (FPSO) vessel to maximum performance.
ExxonMobil is also gearing up for potential new investments in the Usan field, which entails drilling several wells, as well as the Owowo deep-water project. Farris described the Owowo project as a $7bn to $8bn venture progressing towards a final investment decision (FID).
“There is about a billion barrels of developed resource that we are progressing, looking into an FID as early as next year,” Farris said. He also highlighted the Bosi oil and gas field adjacent to Erha, which has the potential to attract fresh capital of between $15bn and $16bn if the company develops a new FPSO and pipelines.
The proposed investments serve as evidence that the company is “getting back in business,” according to Farris. He noted that ExxonMobil is keying into the rejuvenation of deep-water activity in Nigeria, commending the improved regulatory environment for enhancing the ease of doing business.
NUPRC commission chief executive Oritsemeyiwa Eyesan expressed excitement over the commitment, affirming that the commission will support these developments. Eyesan stated that the NUPRC remains dedicated to safeguarding petroleum investments that serve the interests of the Nigerian people.
