ExxonMobil is a significant player in Nigeria's oil and gas sector, involved in various aspects of the industry, from exploration and production to manufacturing and marketing of petroleum products. The company also has interests in electric power generation facilities and is a major manufacturer of commodity and specialty petrochemicals.
ExxonMobil's Upstream Affiliates
ExxonMobil's upstream affiliates operate five deepwater blocks in Nigeria. These affiliates include:
- Esso Exploration and Production Nigeria Limited
- Esso Exploration and Production Nigeria (Offshore East) Limited
- Esso Exploration and Production Nigeria (Deepwater West) Limited
- Esso Exploration and Production Nigeria (Upstream) Limited
- Esso Exploration and Production Nigeria (Deepwater Ventures) Limited
Esso Exploration and Production Nigeria Limited (EEPNL) was founded in 1993 as a subsidiary of Exxon Corporation.
Major Discoveries and Production
In 1999, EEPNL confirmed a major discovery at Erha, with a well drilled to 3,745 meters and a flow rate of 2,800 barrels per day. Erha now produces 150,000 barrels of oil and processes 315 MMSCF of natural gas daily, with an estimated recovery of 500 million barrels of oil.
In early 2014, EEPNL (Offshore East) Limited took over the operatorship of Usan, a deepwater oil field in OML Block 138, from Total E&P Nigeria Limited. Following NNPC’s approval and the signing of a Transition Support Agreement with Total on November 27, 2013, EEPNL officially took over as the operator of the Usan field. ExxonMobil also has deepwater production in Nigeria.
Read also: The Rise of Nigerian Basketball
Deep Water Oil Operation: VP Shettima Welcomes ExxonMobil's bn Investment
Partnership with NNPC
ExxonMobil partners with the Nigerian National Petroleum Corporation (now NNPC Limited).
Planned Investment in Deepwater Exploration
ExxonMobil has affirmed its long-term commitment to Nigeria’s oil and gas sector with a planned investment of 1.5 billion dollars in deepwater exploration and development.
This significant financial commitment, which will be implemented between Q2, 2025 - 2027 focuses on revitalizing production in the Usan deepwater oil field. This move counters speculation about ExxonMobil’s potential withdrawal from Nigeria, instead underscoring a strategic expansion and strengthening of its operational footprint in the country.
During a courtesy visit by Mr. Shane Harris, ExxonMobil’s Managing Director in Nigeria, to the Commission Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Engr. Gbenga Komolafe, the announcement was made. Mr. Komolafe welcomed the announcement, reaffirming the NUPRC’s role as a business enabler and pledging regulatory support to facilitate ExxonMobil’s operations.
Discussions during the visit also addressed compliance with the Domestic Crude Supply Obligation and the need for transparent pricing and accountability in the sector. In his role as the new Chairman of the Oil Producers Trade Section (OPTS), Mr.
Read also: Requirements for Nigeria Police Clearance
Sale of Equity Interest to Seplat Energy
In November, ExxonMobil completed the sale of its equity interest in Mobil Producing Nigeria Unlimited to Seplat Energy. The deal, worth almost $1.3 billion, makes Seplat Nigeria's biggest domestic player, with net output set to rise by 71,000 boe/d from the 47,525 boe/d announced in September.
The transaction, first agreed in February 2022, faced significant hurdles, including opposition from Nigerian officials and legal challenges, with state-owned Nigerian National Petroleum Co. suggesting it could exercise its pre-emption rights on the deal.
Seplat Energy has acquired a company with one of the best portfolios of assets and related infrastructure in a world-class basin, providing enormous potential for the Seplat Group.
Challenges and Controversies
In 2010, the Nigerian government warned ExxonMobil after a series of offshore oil spills. In 2012, one major oil spill at an ExxonMobil oil facility in the Niger Delta spread 20 miles from its source.
Nigeria's Oil Production
Output has fallen in recent years and is well below Nigeria's approximately 2.2 million b/d capacity and 2005 peak of 2.45 million b/d.
Read also: Nigeria's Thriving Music
| Year | Oil Production (b/d) |
|---|---|
| 2005 (Peak) | 2.45 million |
| Current Capacity | 2.2 million (approx.) |
Popular articles:
tags: #Nigeria
