ExxonMobil has briefed the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) on its plan to invest in multi-billion dollar deep-water projects.
The oil major unveiled its plans when it visited the NUPRC headquarters in Abuja as part of activities to mark 20 years of Erha deep water project.
In his remarks, the Senior Vice President, Deepwater, ExxonMobil Upstream Company, Mr. Hunter Farris, said the oil major was encouraged by Nigeria’s improved investment climate hence its decision to “renew our vows to Nigeria”.
Specifically, he noted that the Production Sharing Contract on Erha had been extended to 2042 and the company was doing a lot of life extension works to get the Erha FPSO back to maximum performance.
Besides Erha, he said ExxonMobil was 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 said, “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 also spoke about the Bosi oil and gas field adjacent Erha which he said had the potential of attracting fresh capital of between $15bn and $16bn if the company was to develop a new FPSO and new pipelines.
The ExxonMobil executive said these proposed investments in Nigeria was evidence that the company is “getting back in business and we’re serious about what we’re doing”.
He noted that the company was keying into the golden age of deepwater or the or the rejuvenation of deepwater in Nigeria.
Farris also commended Nigeria’s improved regulatory environment which he said had tremendously improved the ease of doing business.
Responding, the Commission Chief Executive, NUPRC, Mrs. Oritsemeyiwa Eyesan, expressed excitement over the company’s fresh commitment to Nigeria.
“To hear that FIDs are likely next year is very exciting and rest assured we are willing to support you,” Eyesan stated.
She said the Commission will continue to encourage and safeguard petroleum investments especially those that are in the interest of the Nigerian people.
Eniola Akinkuotu
Head, Media and Corporate Communications