Exxon Mobil Corporation XOM, the U.S. supermajor, is set to invest $1.5 billion in Nigeria’s offshore oil sector, marking a major push to revitalize the country’s deepwater production. According to Nigeria’s oil regulator, the investment will be directed toward rejuvenating output at the Usan oilfield, located on offshore block OML 138 in the eastern Niger Delta, about 70 kilometers from the coast.

XOM Eyes 2025 Final Decision for Usan Development

The investment is scheduled to roll out between 2025 and 2027. ExxonMobil aims to reach a final investment decision (FID) by the end of the third quarter of 2025, subject to approval of the Field Development Plan and the securing of internal and partner financing by the same quarter.

The Usan field, discovered in 2002, was approved for development in 2008 and began production in 2012. It currently includes approximately 34 subsea production and injection wells, supported by eight subsea manifolds. The new capital will be used to reinvigorate the field’s output and enhance operational efficiencies.

XOM Investment Supports Nigeria’s 2.4M bpd Output Goal

During a meeting with Nigerian Upstream Petroleum Regulatory Commission (NUPRC) chief Gbenga Komolafe, ExxonMobil’s Nigeria managing director Shane Harris emphasized that the Usan investment is part of a broader strategy. ExxonMobil is also pursuing the development of other deepwater assets, including the Owowo and Erha fields.

Komolafe praised the commitment, highlighting its alignment with the NUPRC’s "Project 1 Million Barrels" initiative, which seeks to increase Nigeria’s crude output to 2.4 million barrels per day (bpd) by 2026. He noted that such private sector backing is vital for achieving the country's ambitious energy targets.

The Nigerian government is targeting a 1 million bpd increase in oil production by December 2026, up from the current level of 1.75 million bpd.

Persistent oil theft and pipeline sabotage have long hindered Nigeria’s upstream sector, forcing major operators to exit the country and frequently triggering force majeure at key crude export terminals. By focusing on deepwater developments, which are less susceptible to these disruptions, ExxonMobil is positioning itself as a central player in Nigeria’s push to reclaim lost production volumes.

XOM’s Zacks Rank and Key Picks

Currently, XOM carries a Zacks Rank #3 (Hold).

Investors interested in the energy sector may look at some better-ranked stocks like Archrock Inc. AROC, Nabors Industries Ltd. NBR and RPC Inc. RES. Archrock, Nabors Industries and RPC presently sport a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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Archrock is an energy infrastructure company based in the United States with a focus on midstream natural gas compression. AROC provides natural gas contract compression services and generates stable fee-based revenues.

Archrock’s earnings beat estimates in three of the trailing four quarters and met once, delivering an average surprise of 6.19%.

Nabors benefits from its leadership in North American land drilling, a modern rig fleet, and a strong international presence, including expanding operations in high-growth regions like Saudi Arabia, Kuwait and Argentina. The Parker Wellbore acquisition strengthens its global service portfolio and adds meaningful EBITDA and cost synergies. Nabors is also leveraging digital innovation through its RigCLOUD and Corva integration, enhancing operational efficiency. NBR has a Zacks Style Score of A for Value.

RPC generates strong and stable revenues through a diverse range of oilfield services, including pressure pumping, coiled tubing and rental tools. The company is strongly committed to returning value to shareholders through consistent dividends and share buybacks. RPC’s current dividend yield is higher than that of the composite stocks belonging to the industry. Its new Tier IV dual-fuel fleet has boosted profits, with plans for further expansion of high-efficiency equipment to enhance operational capabilities.

RES’ earnings beat estimates in one of the trailing four quarters, met once and missed in the other two, delivering an average negative surprise of 8.66%.

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