ExxonMobil has opted out of Nigeria’s ongoing 2025/2026 oil and gas licensing round, choosing instead to channel its capital into advancing major deepwater developments in the Niger Delta.
The decision was disclosed by the Chairman and Managing Director of ExxonMobil’s Nigerian affiliates, Jagir Baxi, during an interview, where he explained that the company’s current priority is to progress several large-scale projects toward Final Investment Decision (FID).
The licensing exercise, organised by the Nigerian Upstream Petroleum Regulatory Commission, is offering 50 blocks across onshore, swamp, shallow water, offshore and frontier basins. The aim is to stimulate exploration, grow reserves and lift national output.
Of the blocks on offer, 15 are onshore, 19 are in shallow water, 15 fall within frontier basins and one is a deepwater asset. The regulator has already concluded the pre-qualification phase and is now providing data to shortlisted bidders ahead of technical and commercial submissions.
To attract investors, the government reduced the signature bonus to $3 million for onshore and shallow water acreage and $7 million for deepwater blocks. Authorities project the round could generate up to $10 billion in revenue and eventually add as much as 400,000 barrels per day to Nigeria’s production when the assets come on stream.
Despite acknowledging the opportunities in the round, Baxi said ExxonMobil is deliberately holding back to concentrate on projects already in its portfolio. He noted that committing to new acreage at this time could dilute attention and capital needed for developments the company considers more strategic.
Among the key projects ExxonMobil is advancing are the Owowo field development, estimated to cost between $7 billion and $8 billion, the Usan infill drilling programme valued at around $1 billion, and the Erha extension project. The company is also planning a long-term investment of up to $16 billion in the Bosi field over the next five years.
Baxi emphasised that ExxonMobil’s strength in Nigeria lies in deepwater operations, and the company intends to leverage that expertise by focusing on bringing existing discoveries into production rather than pursuing new licences in the current round.
