ExxonMobil has announced plans for significant investments in Nigeria's deepwater sector, signaling a positive response to the country's improved investment climate under President Bola Tinubu's administration. This move aligns with recent commitments from other majors like Shell, Eni, Chevron, and TotalEnergies to revive stalled projects.

Proposed Investments and Project Details

The company plans to invest up to $24 billion across two long-delayed deepwater projects. The first involves life extension works for the mature Erha field, following the extension of its production sharing contract to 2042. The aim is to restore the Erha floating production, storage and offloading (FPSO) vessel to its maximum capacity of 210,000 barrels per day, as current production is far lower.

The second major initiative is the development of the billion-barrel Owowo discovery. This project, estimated to cost $7-8 billion, is being progressed as a subsea tie-back to the existing Usan FPSO. A final investment decision is targeted as early as next year, with the field having the potential to produce 180,000 bpd of oil and 130 million cubic feet per day of gas.

Revival of the Bosi Development

ExxonMobil also discussed reviving the Bosi oil and gas discovery. This project has the potential to attract $15-16 billion in fresh capital if developed with a new FPSO and pipelines. A Bosi FPSO could handle approximately 140,000 bpd of oil and 315 MMcfd of gas, tapping an estimated 600 million barrels of oil. Alternative plans previously assessed included a tie-back to the Erha FPSO.

Regulatory Support and Outlook

The company's deepwater head stated these proposals demonstrate ExxonMobil is "getting back in business" in Nigeria, commending the improved regulatory environment. The chief executive of the Nigerian Upstream Petroleum Regulatory Commission expressed enthusiasm for the plans, pledging support and noting the excitement around potential final investment decisions next year.