Exxon Mobil to Invest $1 Billion to Add 40,000 Barrels per Day to Nigeria Oil Output

Exxon Mobil (XOM) will invest $1 billion in a project in Nigeria that will add about 40,000 barrels per day to the country's crude oil output, the Nigerian Upstream Petroleum Regulatory Commission said in a post on Instagram on Wednesday.

The commission said the investment in on-block activities in the Usan Infill Project in OML 138, was announced by Jagir Baxi, managing director of Exxon Mobil affiliates in Nigeria, during the 25th NOG Energy Week Conference the same day.

Commission Chief Executive, Oritsemyiwa Eyesan said the announcement would mark the first drilling by Esso Exploration and Production Nigeria, an Exxon Mobil affiliate, since 2016.

Esso Exploration and Production operates the OML 138 within which the Usan field is found. The block is operated via a production sharing contract with NNPC Limited, with partners including Chevron (CVX), TotalEnergies (TTE) and Nexen, a subsidiary of China National Offshore Oil.

Separately, the NUPRC on Wednesday awarded licenses from the 2022/23 Mini Bid Round and Nigeria 2024 Licensing Round, with recipients including Boron Energy, Petroli Energy Marketing and Supply, Sahara Deepwater Resources and Tulcan Energy.

In all 12 entities were awarded 19 petroleum prospecting licenses, the statement said, spanning deep offshore, shallow water and continental shelf acreages.

Market Chatter: Qatari LNG Cargo Appears Secure After Tanker Strike Off Oman

A projectile strike left a Qatari liquefied natural gas tanker disabled near Oman's coast, though its cargo remained intact and the immediate threat of an explosion appeared limited, Reuters reported Wednesday, citing industry sources.The report said a fire continued in the engine room after the tanker was hit on its port side Tuesday, while the crew evacuated safely. Sources added that the vessel would likely remain stable unless another attack damaged it.At least four oil and gas tankers abandoned attempts to pass through the Strait of Hormuz, while the head of the United Nations shipping agency urged the warring parties to allow stranded vessels to evacuate.Ship-tracking data from LSEG and MarineTraffic showed a tugboat and a support vessel alongside the tanker near the entrance to the Strait of Hormuz as recovery efforts continued, according to the report. Qatar's Ministry of Foreign Affairs did not immediately reply to' request for comment.(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

US Oil Update: Futures Surge as US Strikes Iran, Trump Declares Truce 'Over'

Crude futures settled higher in after-hours trading on Wednesday after the US military launched another round of strikes against Iran, and President Trump declared the interim ceasefire with Iran "over," stoking fears of supply disruptions through the Strait of Hormuz.Front-month West Texas Intermediate crude futures advanced 6.1% to $74.58 per barrel, while Brent futures rallied 7.3% to $79.45/bbl.On Wednesday, the US Central Command said the US military had launched fresh strikes against Iran, in response to Tehran attacking commercial vessels in or around the Strait. This marks the second straight day of US strikes against Iran."At the direction of the Commander in Chief, US Central Command forces have started conducting additional strikes against Iran to further degrade their ability to threaten freedom of navigation in the Strait of Hormuz," Centcom said in a social media post on X.The latest military assault came hours after Trump said he may no longer be interested in even trying to reach a deal with Iran, after he declared the recent ceasefire agreement between Washington and Tehran "over" amid renewed hostilities in the Middle East.Earlier on Wednesday, Centcom posted that over 20 naval warships were patrolling waters across the Middle East.Iranian Foreign Ministry spokesman Esmaeil Baqaei said that the memorandum of understanding between Iran and the US was not based on the "commitment for commitment" mechanism because there was no sign of good faith in the opposing side's behavior.Soojin Kim, research analyst at MUFG, said that the latest developments are likely to restore part of the geopolitical premium that had largely unwound in recent weeks, though the broader outlook will depend on whether the conflict escalates further or peace talks resume.Meanwhile, US commercial crude oil inventories increased by 3 million barrels to 411.4 mmbbls in the week ended July 3, the Energy Information Administration said in its weekly report on Wednesday.Crude inventories are now about 6% below the five-year average for this time of year, the EIA said.Aegis Hedging strategists said in a Wednesday note that US crude stocks are now at a deficit of 14.70 mmbbls, or -3.4% to last year, and a deficit of 50.40 mmbbls, or -10.9% to the five-year average.

Exxon Mobil to Invest $1 Billion to Add 40,000 Barrels per Day to Nigeria Oil Output

Related Articles

Market Chatter: Qatari LNG Cargo Appears Secure After Tanker Strike Off Oman

Trump Says US Strikes on Iran are 'Retribution' for Hormuz Ship Bombing; Warns of Harsher Response if Attacks Continue

US Oil Update: Futures Surge as US Strikes Iran, Trump Declares Truce 'Over'

Related Articles

Oil & Energy21d ago
Market Chatter: Qatari LNG Cargo Appears Secure After Tanker Strike Off Oman
A projectile strike left a Qatari liquefied natural gas tanker disabled near Oman's coast, though its cargo remained intact and the immediate threat of an explosion appeared limited, Reuters reported Wednesday, citing industry sources.The report said a fire continued in the engine room after the tanker was hit on its port side Tuesday, while the crew evacuated safely. Sources added that the vessel would likely remain stable unless another attack damaged it.At least four oil and gas tankers abandoned attempts to pass through the Strait of Hormuz, while the head of the United Nations shipping agency urged the warring parties to allow stranded vessels to evacuate.Ship-tracking data from LSEG and MarineTraffic showed a tugboat and a support vessel alongside the tanker near the entrance to the Strait of Hormuz as recovery efforts continued, according to the report. Qatar's Ministry of Foreign Affairs did not immediately reply to' request for comment.(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

Oil & Energy21d ago
Trump Says US Strikes on Iran are 'Retribution' for Hormuz Ship Bombing; Warns of Harsher Response if Attacks Continue

Oil & Energy21d ago
US Oil Update: Futures Surge as US Strikes Iran, Trump Declares Truce 'Over'
Crude futures settled higher in after-hours trading on Wednesday after the US military launched another round of strikes against Iran, and President Trump declared the interim ceasefire with Iran "over," stoking fears of supply disruptions through the Strait of Hormuz.Front-month West Texas Intermediate crude futures advanced 6.1% to $74.58 per barrel, while Brent futures rallied 7.3% to $79.45/bbl.On Wednesday, the US Central Command said the US military had launched fresh strikes against Iran, in response to Tehran attacking commercial vessels in or around the Strait. This marks the second straight day of US strikes against Iran."At the direction of the Commander in Chief, US Central Command forces have started conducting additional strikes against Iran to further degrade their ability to threaten freedom of navigation in the Strait of Hormuz," Centcom said in a social media post on X.The latest military assault came hours after Trump said he may no longer be interested in even trying to reach a deal with Iran, after he declared the recent ceasefire agreement between Washington and Tehran "over" amid renewed hostilities in the Middle East.Earlier on Wednesday, Centcom posted that over 20 naval warships were patrolling waters across the Middle East.Iranian Foreign Ministry spokesman Esmaeil Baqaei said that the memorandum of understanding between Iran and the US was not based on the "commitment for commitment" mechanism because there was no sign of good faith in the opposing side's behavior.Soojin Kim, research analyst at MUFG, said that the latest developments are likely to restore part of the geopolitical premium that had largely unwound in recent weeks, though the broader outlook will depend on whether the conflict escalates further or peace talks resume.Meanwhile, US commercial crude oil inventories increased by 3 million barrels to 411.4 mmbbls in the week ended July 3, the Energy Information Administration said in its weekly report on Wednesday.Crude inventories are now about 6% below the five-year average for this time of year, the EIA said.Aegis Hedging strategists said in a Wednesday note that US crude stocks are now at a deficit of 14.70 mmbbls, or -3.4% to last year, and a deficit of 50.40 mmbbls, or -10.9% to the five-year average.