…As crude oil production drops by 64,000b/d in April 2025
By Charles Ebi
ExxonMobil is planning a $1.5 billion investment in deepwater exploration and development of the Usan oilfield in Nigeria.
The Nigerian Upstream Petroleum Regulatory Commission ,NUPRC, revealed this in a statement, noting that commitment will be implemented between this current quarter ,Q2 2025, and 2027.
This announcement, it said, was made during a visit by ExxonMobil’s Managing Director in Nigeria, Mr Shane Harris, to the Commission’s Chief Executive of the NUPRC, Mr Gbenga Komolafe.
The company proposed a Final Investment Decision ,FID, for late Q3 2025, subject to final Field Development Plan ,FDP, approval as well as internal and partner funding approvals, the upstream regulator added.
According to the NUPRC, this is in addition to investment targeted at the accelerated development of the Owowo and Erha deepwater oil fields, amongst others.
Mr Harris, while speaking, stated that the planned capital deployment reflects ExxonMobil’s confidence in Nigeria’s upstream potential and its dedication to playing a pivotal role in the sector’s growth.
He also voiced ExxonMobil’s support for the NUPRC’s “Project 1 Million Barrels” initiative, which aims to increase Nigeria’s crude oil production to 2.4 million barrels per day in the medium term.
The initiative has gotten commitments from other oil firms operating in the country since it was floated last year.
On his part, the NUPRC Chief Executive, Mr Komolafe, welcomed the announcement, reaffirming the NUPRC’s role as a business enabler and pledging regulatory support to facilitate ExxonMobil’s operations.
Mr Komolafe highlighted the importance of sustained collaboration between regulators and investors to meet Nigeria’s production and energy security goals, highlighting compliance with the Domestic Crude Supply Obligation ,DCSO, and the need for transparent pricing and accountability in the sector.
“The commission is committed to the implementation of Section 109 of the PIA, which addresses the subject of willing buyer, willing seller, and we urge producers to comply”, he stated.
However, Nigeria’s average daily crude oil production declined by 64,000 barrels per day or 4.4% to 1.401 million barrels per day in April 2025 from 1.465 million barrels per day recorded in the preceding month ,March.
The Organization of Petroleum Exporting Countries ,OPEC, April Monthly Oil Market Report revealed this, saying the numbers are based on direct communication from the producing countries.
The report also indicated that oil production fell by 6.6% below OPEC’s 1.5 million barrels per day quota, and approximately 32% belief of the country’s 2025 budget target of 2.06 million barrels per day.
Nigeria’s persistent shortfalls in meeting government production targets comes from challenges such as underinvestment and rampant oil theft, all contributing to suppressed output.
Nigeria’s oil production peaked at 2.5 million barrels decades ago and despite ambitious 3-4 million barrels promises by subsequent governments, the highest actualisation in recent times have been 1.8 million barrels per day.
The decline in oil production since then and the falling oil prices in the international market are likely to strain fiscal revenues, worsening budgetary pressures
Market analysts have pointed out that this will impact national reserves, thereby reducing the availability of resources for developmental spending.
While the government has no control over global oil prices, it can, to some extent, meet its OPEC production quota.
Therefore, the government must intensify efforts by enforcing stricter penalties for oil theft, while fostering greater collaboration with local communities.
Simultaneously, there is a need to attract investment in the sector by ensuring that regulatory bodies and the judiciary work together to provide an enabling environment for investment and modernisation of oil infrastructure.
