ExxonMobil mulls $8b project in Owowo
American oil giant ExxonMobil has reignited plans to invest in multi-million dollar deep water projects in the country’s oil and gas sector. As part of the investment plans, the oil
American oil giant ExxonMobil has reignited plans to invest in multi-million dollar deep water projects in the country’s oil and gas sector. As part of the investment plans, the oil firm said it would take its Final Investment Decision (FID) on the $8 billion Owowo field by 2027. It also explained that its Production Sharing Contract on Erha deep water project has been extended to 2042.
The Owowo oil field is located in deep water offshore Nigeria, specifically within Oil Mining Licenses (OML) 139 and 154. It is situated approximately 25 kilometers east of the Usan field and located off the coast of Bayelsa State, while the Erha oil field is located in the deep water region of the Gulf of Guinea, Nigeria, offshore in the western Niger Delta region.
The new deepwater projects are taking place near the existing Erha field. Erha field has existed for 20 years now.
Also drawing investment attention is the Bosi oil and gas field adjacent Erha which the firm disclosed had the potential of attracting fresh capital of between $15b and $16b if the company was to develop a new FPSO and new pipelines.
Advertisement
300x250
The Senior Vice President, Deepwater, ExxonMobil Upstream Company, Hunter Farris, made this known while on a visit to the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) as part of activities to mark 20 years of Erha deep water project.
The investment plans, Farris explained, are based on Nigeria’s improved investment climate and improved regulatory environment which he said had tremendously improved, including the ease of doing business, hence its decision to “renew our vows to Nigeria.
“There is about a billion barrels of developed resource, of between $7b and $8b dollar project, that we are progressing, looking into an FID as early as next year,” he explained .
Farris, while revealing the firm’s investment plans in deep water projects, specifically, noted that by extending the Production Sharing Contract on Erha to 2042, the company’s huge life extension works to get the Erha FPSO back to maximum performance, are part of ExxonMobil’s decision to renew her vows to Nigeria.
READ ALSO: How land holds the key to Nigeria’s ranching future
Besides Erha, he said ExxonMobil was gearing up for potential new investments on Usan which entails “drilling a handful of wells” as well as the Owowo deepwater project.
Advertisement
300x250
On the Owowo project, he said: “There is about a billion barrels of developed resource, of between $7 billion and $8 billion project that we are progressing, looking into an FID as early as next year.”
The ExxonMobil executive said these proposed investments in the country was evidence that the company is “getting back in business and we’re serious about what we’re doing.” He noted that the company was keying into the golden age of deepwater or the rejuvenation of deepwater in Nigeria.
The Commission Chief Executive, NUPRC, Mrs. Oritsemeyiwa Eyesan, expressed excitement over the company’s fresh commitment to Nigeria.
“To hear that FIDs are likely next year is very exciting and rest assured we are willing to support you,” Eyesan stated.
She said the Commission will continue to encourage and safeguard petroleum investments especially those that are in the interest of the Nigerian people.
The Erha oil field is located in the deepwater region of the Gulf of Guinea, Nigeria, offshore in the western Niger Delta region.
