By Bassey Udo
ExxonMobil has unveiled a plan to invest multi-billion dollars in Erha deep-water projects.
The Senior Vice President, Deepwater, ExxonMobil Upstream Company, Mr. Hunter Farris, unfolded the plan when he visited the Commission Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Mrs. Oritsemeyiwa Eyesan, in Abuja.
Farris, who said he was in Abuja to brief the NUPRC on its plan towards the final investment decision to secure the buy-in of the upstream petroleum industry regulator on the deepwater projects, said this was part of activities to mark 20 years of Erha deep water project.
He said the decision by the oil major to renew its vows to Nigeria and unfold the multi-billion investment plan was encouraged by Nigeria’s improving investment climate in recent times.
Specifically, he noted that the Production Sharing Contract (PSC) on Erha Deepwater Development had been extended to 2042, adding that the company was doing a lot of life extension works to get the Erha floating production and storage offsloading (FPSO) vessel back to maximum performance.
Besides, 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.
On the Owowo project, he said, “There is about a billion barrels of developed resource, of between $7bn and $8bn project, that we are progressing, looking into an FID as early as next year.”
Farris also spoke about the Bosi oil and gas field, adjacent Erha, which he said had the potential of attracting fresh capital of between $15bn and $16bn, if the company was to develop a new FPSO and new pipelines.
The ExxonMobil executive said these proposed investments in Nigeria were evidence that the company was getting back in business and were serious about what they are doing.
He noted that the company was keying into the golden age of deepwater, or the rejuvenation of deepwater in Nigeria.
Farris also commended Nigeria’s improved regulatory environment, which he said had tremendously improved the ease of doing business.
Responding, 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. We want you be rest assured that we are willing to support you,” Eyesan stated.
She said the Commission wouldk continue to encourage and safeguard petroleum investments especially those that are in the interest of the Nigerian people.
