According to TNC’s research, ExxonMobil’s intention to invest $10 billion in deep-water oil projects in the largest oil-producing nation in Africa is anticipated to unleash at least 180,000 barrels per day (bpd).
One of the foreign oil firms (IOCs) that left Nigeria’s onshore environment to investigate deep-water operations in the oil-rich Niger Delta is ExxonMobil.
Executives from ExxonMobil have made vague references to the advancements being made on some deep-water projects in Nigeria during recent public appearances. These projects include the oil-rich Niger Delta’s OML 133 (Erha FPSO), OML 138 (Usan FPSO), OML 139, and OML 154 (Owowo find).
The Owowo deep water asset, a large deep-sea project drilled by ExxonMobil affiliate Esso Exploration and Production Nigeria (Deepwater Ventures) Limited, is at the centre of the company’s new strategy in Nigeria. It is estimated to cost $10 billion and unlock 180,000 bpd.
According to TNC’s research, the Owowo field offshore Nigeria contains a potentially recoverable resource of 500 million to 1 billion barrels of oil, located in the deepwater asset found in October 2016.
The chairman and managing director of ExxonMobil affiliates in Nigeria, Shane Harris, stated, “We’re working closely with the president’s office and the special adviser to the president to secure favourable fiscal arrangements that will make this significant investment possible,” as quoted by the presidential press release on Thursday.
“Our dedication to Nigeria never wavers. Harris added, “We’re not retreating, but refocusing our investments on deep-water opportunities as we celebrate 70 years of oil production and 8 billion barrels produced.”
In August 2023, Exxonmobil released a tender to find oil rigs for workovers, temporary abandonment, testing, completion, and drilling in water depths ranging from 600 to 1,800 meters. OML 139 and 154 were emphasised in this procurement, ending September 6, 2023. There is a two-year option to extend this beyond the first three years.
The provision of oil country tubular goods (OCTG) and services under the same licenses and for the same amount of time was the subject of another tender. On August 8, 2023, this OCTG tender concluded.
