*Possible $16b investment in Bosi oil and gas field
WorldStage– ExxonMobil has signaled fresh momentum in Nigeria’s upstream sector with an Final Investment Decision (FID) of about $7 billion to $8 billion for the Owowo project as early as next year.
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC), in a statement on Thursday by its Head of Media and Corporate Communications, Eniola Akinkuotu, revealed that the oil major unveiled this along other plans during a visit to the commission’s headquarters in Abuja as part of activities marking 20 years of the Erha deepwater project.
The Senior Vice President, Deepwater, ExxonMobil Upstream Company, Hunter Farris was also quoted as saying that the Bosi oil and gas field adjacent to Erha could attract fresh capital investment of between $15bn and $16bn if the company proceeds with the development of a new FPSO and pipelines, said the oil major was encouraged by Nigeria’s improved investment climate, hence its decision to “renew our vows to Nigeria.”
Specifically, he noted that the Production Sharing Contract for Erha had been extended to 2042, adding that the company was undertaking extensive life-extension work to restore the Erha FPSO to peak performance.
Beyond Erha, he said ExxonMobil was gearing up for potential new investments in Usan, which would involve “drilling a handful of wells,” as well as the Owowo deepwater project.
The ExxonMobil executive said the proposed investments in Nigeria were evidence that the company is “getting back in business, and we’re serious about what we’re doing.”
He added that the company was keying into what he described as a “golden age of deepwater” or the rejuvenation of deepwater operations in Nigeria.
Farris further commended Nigeria’s improved regulatory environment, noting that it has significantly enhanced the ease of doing business.
Responding, the Chief Executive of NUPRC, Oritsemeyiwa Eyesan, expressed excitement over the company’s renewed commitment to Nigeria.
“To hear that FIDs are likely next year is very exciting, and rest assured we are willing to support you,” Eyesan said.
She added that the Commission would continue to encourage and safeguard petroleum investments, especially those that serve the interests of the Nigerian people.
