ExxonMobil and its partners will invest $1 billion in Nigeria’s offshore Usan Infill Project, a move expected to increase the country’s oil production capacity by about 40,000 barrels per day, Reuters reported, citing Nigeria’s upstream petroleum regulator.
The investment marks ExxonMobil’s return to drilling operations in Nigeria after nearly a decade. The U.S. oil major last conducted a drilling campaign in the country in 2016.
The offshore project is expected to strengthen output from Africa’s largest oil producer at a time when Nigeria is seeking to reverse years of declining production through fresh investment and regulatory reforms.
Nigeria’s upstream petroleum regulator said the Usan Infill Project would help boost production while signaling renewed investor confidence in the country’s oil and gas sector, according to the Reuters report.
The investment comes as Nigeria steps up efforts to attract international energy companies following the implementation of reforms aimed at improving the operating environment and unlocking new upstream investment.
Nigeria, one of Africa’s leading crude oil producers and a member of the Organization of the Petroleum Exporting Countries (OPEC) in recent years, has faced persistent challenges, including oil theft, pipeline vandalism and underinvestment, which have weighed on production. The Nigerian government has sought to reverse the trend by accelerating project approvals and encouraging fresh capital inflows into the sector.
