Oil & Gas
By Anthony Isibor
NIGERIA Agip Exploration Limited, NAE says Nigeria is moving closer to a final investment decision, FID, on the Zabazaba and Etan Deepwater Integrated Project as recent reforms restore investor confidence and improve the outlook for offshore developments.
Richard Orianzi, Deputy Managing Director, NAE disclosed this on Wednesday during a strategic panel session titled “Maximising Offshore Investment – Succeeding in Complex Energy Frontiers” at the 2026 NOG Energy Week in Abuja.
Orianzi stated that the country’s deepwater sector has entered a new phase of renewed investor interest, driven by policy and regulatory reforms, but warned that lowering project costs remains critical to converting opportunities into sanctioned investments.
He identified the proposed Zabazaba and Etan Deepwater Integrated Project as one of the major developments progressing towards FID, describing it as part of the industry’s renewed investment cycle.
According to him, Nigeria’s challenge is no longer attracting attention from investors, but ensuring that projects are competitive enough to secure board approvals.
“One thing about Nigeria’s rebirth in deepwater over the last several years is that costs remain stubbornly high,” he said.
Orianzi explained that NAE is investing in a permanent shore base at the LADOL Free Zone to improve logistics, increase operational efficiency and reduce development costs for deepwater operations.
He explained that the facility is designed to create an ecosystem that will support not only ExxonMobil’s operations but also other operators executing offshore projects in Nigeria.
The investment, he noted, has received support from the Nigerian Upstream Petroleum Regulatory Commission. NUPRC, and the Nigerian Content Development and Monitoring Board, NCDMB, both of which recognise its long-term value to the industry.
Baxi also said that greater flexibility in contracting arrangements was helping to reduce costs. He explained that allowing offshore drilling and support assets to move between operators’ projects, instead of being tied to a single campaign, improves utilisation and lowers overall development costs.
He stressed that sustainable Nigerian content would be achieved only when local capabilities become globally competitive and commercially viable over the long term.
“We have to benchmark ourselves globally. The real success will be when these opportunities become routine and Nigeria is competitive on cost and execution,” he said.
Also speaking during the session, Executive Vice President, Upstream, NNPC Limited, Udy Ntia, urged operators to deepen collaboration through shared infrastructure, cluster developments and coordinated project planning to improve project economics.
He said that facilities such as floating production, storage and offloading, FPSO, vessels and subsea infrastructure should increasingly be shared where practical, adding that collaboration around projects such as the Zabazaba and Etan Deepwater Integrated Project could unlock greater value while avoiding duplication of investment.
Moderator Oliver Onyekweli, a Partner at McKinsey & Company, said that discussions at the recent Offshore Technology Conference, OTC, in Houston showed that Nigeria has once again become a major focus for global upstream investors.
According to him, international oil companies are increasingly asking about the reforms implemented in Nigeria and the growing number of investment opportunities emerging in the country’s offshore sector.
He, however, stated that sustaining the momentum would require continued focus on cost competitiveness, collaboration across the value chain and timely execution of projects leading to final investment decisions.
A.I
July 8, 2026
Tags: ExxonMobil Jagir Baxi NCDMB NUPRC Oliver Onyekweli