According to Olu Verheijen, President Bola Tinubu’s Special Adviser on Energy, Nigeria has attracted over $8 billion in investments in Deepwater projects and gas in one year.
The Special Adviser made this statement at the 2025 Africa CEO Forum in Abidjan, Côte d’Ivoire.
According to her, President Tinubu’s reforms, like streamlining contracting times and improving fiscal terms (Tax Reform Bills), make Deepwater and gas projects more attractive to investors.
Key Deepwater and Gas Projects Attracting Investments in Nigeria
Bonga North Deepwater Project
In December 2024, Shell Nigeria Exploration and Production Company (SNEPCo) reached a Final Investment Decision to invest about $5 billion into the project. Bonga is one of Nigeria’s largest Deepwater project
- Location: OML 118 (Niger Delta), 130 km Offshore southwest of the Niger Delta
- Operators: SNEPCo operates the Bonga North project with a 55% interest. Esso Exploration and Production Nigeria Limited hold 20%, while TotalEnergies Exploration and Production Nigeria Limited and ENI hold 12.5% each. These partnerships operate under a Production Sharing Contract with the Nigerian National Petroleum Company Limited
- Production Capacity: 110,000 barrels of oil per day
- Reserves: 300 million barrels of oil equivalent (BOE)
- First Oil Target: By the end of the decade
- Why It Matters: Strengthens Nigeria’s position in Deepwater oil exploration.
Ubeta Gas Field Development Project
In June 2024, NNPC and TotalEnergies reached an FID for a $550 million Ubeta Gas Field Development.
- Location: Ubeta Field, OML 58 (Onshore), Rivers State, Nigeria
- Operators: Jointly operated by TotalEnergies (40% interest) and the Nigerian National Petroleum Company Limited (60% interest)
- Production Capacity: 300 million cubic feet of gas per day (about 70,000 barrels of oil equivalent per day, including condensates)
- Start of Production: 2027
- Why It Matters: Gas from Ubeta will be supplied to Nigeria Liquefied Natural Gas (NLNG). NLNG is undergoing an expansion to increase its capacity from 22 to 30 million tonnes per annum. NNPC and TotalEnergies hold a 49% & 15% interest in NLNG, respectively.
UTM Offshore Floating LNG Facility
In September 2024, the country’s midstream regulator, Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), granted UTM Offshore a “License to Construct” the FLNG facility.
- Location: Akwa Ibom State, within OML 104, about 60 kilometres Offshore
- Production Capacity: The FLNG facility will process 2.8 million tonnes of liquefied natural gas (LNG), 500,000 tonnes of liquefied petroleum gas (LPG), and 200,000 tonnes of condensate annually
- Ownership Structure: The project is a joint venture comprising UTM Offshore Limited (72%), NNPC (20%), and the Delta State Government (8%)
- Gas Source: The project will utilize associated gas from ExxonMobil’s Yoho field
- Timeline: Production anticipated to commence in the first quarter of 2029.
ExxonMobil’s $1.5 Billion Deepwater Investment
- Project Focus: Revitalization of the Usan Deepwater oilfield
- Location: About 70 km offshore in Oil Mining Lease (OML) 138, eastern Niger Delta
- Investment Timeline: Scheduled from Q2 2025 through 2027.
- Final Investment Decision (FID): Expected by late Q3 2025, pending regulatory approvals and partner funding.
- Why it Matters: Supports Nigeria’s “Project 1 Million Barrels” initiative. The initiatives aims to increase crude oil production to 2.4 million barrels per day by 2026.
Strategic Roadmap for the Oil and Gas Sector
Bashir Ojulari, the new NNPC GCEO, presented a roadmap on April 19 to revitalize Nigeria’s oil and gas sector.
Regarding crude oil production, Ojulari presented an ambitious plan to boost output to over 2 million barrels per day by 2027 and 3 million bpd by 2030. Also, Ojulari stated that NNPC Ltd aims to attract $30 billion in investments by 2027 and $60 billion by 2030.
On the gas front, Ojulari revealed that NNPC would boost gas production to 10 billion cubic feet (bcf) per day by 2027 and 12 bcf per day by 2030.
Due to crude theft, pipeline vandalism, and upstream underinvestment, Nigeria’s crude oil output has dropped from 2.5 million to 1.6 million bpd. As a result, projects like Bonga North and ExxonMobil USAN revitalization could add 300,000–500,000 bpd by 2027.
Nigeria has the 8th largest gas reserves globally (212 TCF), but underutilizes them due to gas flaring. Therefore, new gas projects like Ubeta and UTM will support LNG exports, gas to power plants for electricity generation, and gas to industries as feedstock for industrial use.
