U.S. oil giant ExxonMobil is set to invest up to $1.5 billion in deepwater exploration and development offshore Nigeria, marking a major boost for the country’s upstream oil sector.

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) confirmed the planned investment, which will be channeled into revitalizing production in the Usan deepwater oilfield between 2025 and 2027.

“ExxonMobil’s planned capital investment reflects its confidence in Nigeria’s upstream potential,” said Shane Harris, ExxonMobil’s Managing Director in Nigeria. “We are committed to playing a pivotal role in the country’s oil and gas production growth.”

The U.S. supermajor made the commitment during a meeting with NUPRC chief executive Gbenga Komolafe. Harris also expressed the company’s support for Nigeria’s “Project 1 Million Barrels” initiative, which aims to boost crude production by 1 million barrels per day (bpd) to 2.4 million bpd by December 2026.

This announcement comes after ExxonMobil’s exit from Nigeria’s onshore sector, following the sale of its assets to local firm Seplat Energy.

The long-delayed regulatory approval for the deal was granted at the end of 2024, freeing Exxon to focus fully on its offshore ambitions.The NUPRC noted that ExxonMobil expects to reach a Final Investment Decision (FID) in Q3 2025, pending final approvals of the Field Development Plan and financing from internal and external partners.

Nigeria has faced longstanding challenges such as oil theft and pipeline vandalism, which have driven several international oil companies away.

But recent government crackdowns and regulatory reforms are beginning to rebuild confidence in the sector.

With Brent crude trading at $61.46 and WTI at $58.46 today, Nigeria is hoping new investments like Exxon’s will help it take full advantage of rising oil prices and meet ambitious production goals.