Nigeria's Oil Output at Risk as ExxonMobil Affiliate Declares Force Majeure

Nigeria's oil production and revenue are at risk due to a force majeure declared by Esso Exploration & Production Nigeria Limited (EEPNL), an affiliate of ExxonMobil, on crude exports from its Erha deepwater field. This disruption threatens the production of about 200,000 barrels of oil per day.

The Erha field is one of Nigeria's largest and most strategic deepwater assets, with a production capacity of around 200,000 barrels per day. It is located on Oil Mining Lease (OML) 133, approximately 100 kilometers offshore in the western Niger Delta. The field is a major contributor to Nigeria's daily crude oil output and export earnings.

The declaration comes at a critical time for the Federal Government, which relies heavily on higher crude oil production to boost revenue and fund key provisions of the 2026 budget. Lower production would likely translate into reduced crude exports, weaker foreign exchange inflows, lower government revenue, and increased pressure on the implementation of the 2026 budget.