Nigeria Earns $70bn from ExxonMobil’s Erha Deepwater Project, $23bn Remitted to FG

Two decades of offshore production deliver major revenue boost, as FG pushes for increased gas development

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By A1 News International | Abuja, Nigeria

Nigeria has generated over $70 billion from ExxonMobil’s Erha Deepwater project over the past 20 years, with about $23 billion remitted directly to the Federal Government.
The disclosure underscores the long-term economic impact of offshore oil operations on national revenue and capacity development.

The Chairman/Managing Director of ExxonMobil Affiliates in Nigeria, Jagir Baxi, disclosed the figures during a courtesy visit to the Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, in Abuja.

According to Baxi, the Erha Deepwater project has produced over 800 million barrels of crude oil since inception, generating substantial economic value for the country.

The minister described the project’s 20-year operational milestone as a benchmark for Nigeria’s deepwater oil sector, citing its technical efficiency, safety record, and sustained productivity in a challenging offshore environment.

He noted that the project has contributed significantly to government revenue, job creation, and local capacity development.

Ekpo also highlighted the high level of local participation, stating that over 95 per cent of the workforce involved in the Erha operations are Nigerians with critical industry expertise.

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While commending the company’s performance, the minister urged ExxonMobil to expand its focus on gas development alongside oil production. He emphasised the need to align with Nigeria’s broader energy transition goals, including boosting domestic gas utilisation, exports, and revenue diversification.

The Federal Government also reiterated its commitment to maintaining a stable investment climate, anchored on the Petroleum Industry Act, to attract continued investment in the oil and gas sector.

Erha Project Sets Benchmark in Deepwater Operations
The Erha Floating Production Storage and Offloading (FPSO) facility has sustained production for two decades, reflecting operational resilience and technological expertise.
Officials say the project remains a model for long-term offshore oil production in Nigeria.

FG Pushes for Stronger Gas Development Strategy
Despite the success in crude oil production, the government is urging operators to integrate gas development into their offshore operations.
Authorities argue that gas expansion is critical to energy security, industrial growth, and export earnings.

The Erha project’s $70 billion value highlights the strategic importance of deepwater oil assets to Nigeria’s economy. However, the government’s renewed push for gas development signals a shift toward a more balanced energy mix, aimed at reducing dependence on crude oil revenues and strengthening long-term economic stability.