Exxon Mobil Corp. will invest $1.5 billion in developing a deepwater oil field in Nigeria as the continent's largest producer aims to boost output, the country's regulator said.
The investment, to be deployed over the next two years, will go towards reviving production in the Usan field and is independent of funds reserved for future development at Owowo and Erha, the Nigerian Upstream Petroleum Regulatory Commission stated in a press release on Tuesday after receiving a visit from Exxon's Nigeria managing director, Shane Harris.
The producer intends to achieve oil output of 2.4 million barrels a day from dwindling to less than half of 2022 level. Nigeria increased attempts to reduce vandalism and increase regulation after the divestments by oil majors in onshore and shallow water fields on account of security concerns. Local independent producers are set to raise output as assets shift from recent sales.
While Exxon investment plans confirm its continued interest in the country, the company initially considered investing as much as $10 billion in Nigeria's offshore oil ventures, the government announced in September.
"This move contradicts speculation on Exxon Mobil's potential withdrawal from Nigeria, instead underscoring a strategic build-up and strengthening of its operational footprint in the country," the NUPRC said in Tuesday's statement.
Exxon could make a final investment decision on Usan during the third quarter, subject to approvals for its field development plan and by partners, NUPRC stated.