Multinational oil company ExxonMobil is not participating in the ongoing 2025/2026 Nigeria oil licensing round being conducted by the Nigerian Upstream Petroleum Regulatory Commission, as it prioritises the development of its deepwater projects in the Niger Delta.
The Chairman and Managing Director of ExxonMobil Affiliates in Nigeria, Jagir Baxi, disclosed this during an interview, confirming that the company has opted out of the bid exercise despite acknowledging the ongoing round.
In the current licensing round, 50 oil and gas blocks spread across onshore, swamp, shallow water and offshore terrains, as well as frontier basins, are being offered for sale as part of efforts to boost exploration activities and increase Nigeria’s oil and gas reserves and production.
Of the 50 blocks available, 15 are onshore assets, 19 are located in shallow water, 15 are frontier assets, while one block is in deep water.
Last month, the Nigerian Upstream Petroleum Regulatory Commission announced the completion of the pre-qualification stage of the bid exercise and notified successful applicants accordingly.
The process is currently at the stage of leasing data in preparation for technical and commercial bid submissions.
To attract investors, the government reduced the signature bonus to $3 million for onshore and shallow water blocks and $7 million for deepwater blocks, with projections to generate about $10 billion in revenue and increase oil production by up to 400,000 barrels per day when the assets begin production.
However, Baxi said the company’s decision not to participate is driven by its focus on advancing key deepwater projects toward Final Investment Decision.
These projects include the Owowo oilfield development, estimated to cost between $7 billion and $8 billion, the Usan infill drilling programme valued at around $1 billion, and the Erha extension programme.
The company also plans to invest between $15 billion and $16 billion in the development of the Bosi oilfield over the next five years.
“No, we are not. We’ve chosen not to. We assessed last year’s licensing round and this one. The essential reason for that is that we view that participating in the licensing round will lead us to do one of two things. One, we need to be clear that we want to make that commitment, but I have three large commitments we’ve talked about. I’d prefer to make sure they mature.
“It’s just a capital choice at this point. Then, the other is that our very best capability that we can bring to Nigeria from our global organisation is to the development of deep-water resources that we can see. So we have chosen to keep our attention on our discoveries that are available and need development.”
The development reflects broader investment strategies among international oil companies, which have increasingly focused on deepwater assets and capital discipline while navigating evolving global energy markets and regulatory environments.
