ExxonMobil has disclosed plans to commit multi-billion-dollar investments in Nigeria’s deepwater oil projects, including a potential $7bn to $8bn development of the Owowo field and another $15bn to $16bn investment in the Bosi oil and gas field.
The oil major revealed the plans during a visit to the headquarters of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) on Thursday in Abuja as part of activities marking 20 years of the Erha deepwater project.
Speaking during the visit, Senior Vice President, Deepwater, ExxonMobil Upstream Company, Mr Hunter Farris, said the company was encouraged by Nigeria’s improved investment climate, noting that ExxonMobil was ready to deepen its operations in the country.
He said, “We are encouraged by the improved investment climate in Nigeria and that is why we have decided to renew our vows to Nigeria.”
Farris explained that the Production Sharing Contract for the Erha field had been extended to 2042, adding that the company was undertaking extensive life-extension work to improve the performance of the Erha Floating Production Storage and Offloading vessel.
“Specifically, the Production Sharing Contract on Erha had been extended to 2042 and we are doing a lot of life extension works to get the Erha FPSO back to maximum performance.”
He added that beyond Erha, ExxonMobil was preparing for new investments in the Usan field and the Owowo deepwater project.
“Besides Erha, we are gearing up for potential new investments on Usan which entails drilling a handful of wells as well as the Owowo deepwater project.”
On the Owowo project, he disclosed that the field holds significant hydrocarbon resources and could reach a final investment decision soon.
“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 further spoke about the Bosi oil and gas field located near Erha, noting that its development could attract massive fresh capital into Nigeria’s upstream sector.
“The Bosi oil and gas field adjacent Erha has the potential of attracting fresh capital of between $15bn and $16bn if the company was to develop a new FPSO and new pipelines,”
According to him, the company’s proposed investments demonstrate ExxonMobil’s renewed commitment to Nigeria’s oil and gas sector.
“These proposed investments in Nigeria is evidence that the company is getting back in business and we’re serious about what we’re doing.”
Farris added that ExxonMobil was positioning itself to benefit from what he described as the emerging resurgence in deepwater exploration in the country saying, We are keying into the golden age of deepwater or the rejuvenation of deepwater in Nigeria.”
He also commended Nigeria’s regulatory reforms, saying they had significantly improved the ease of doing business for investors.
Responding, the Commission Chief Executive of the NUPRC, Mrs Oritsemeyiwa Eyesan, welcomed the company’s renewed commitment to Nigeria’s oil sector.
“To hear that FIDs are likely next year is very exciting and rest assured we are willing to support you,” She said.
Eyesan added that the commission remained committed to encouraging and protecting investments in Nigeria’s petroleum industry.
“The Commission will continue to encourage and safeguard petroleum investments especially those that are in the interest of the Nigerian people.”
