Nigeria's Oil Production Hit by ExxonMobil Force Majeure
Nigeria's efforts to boost oil production and meet its 2026 revenue targets have hit a snag due to ExxonMobil's force majeure declaration on crude exports from its Erha deepwater field.
The disruption, which affects about 200,000 barrels per day (bpd) of production, comes at a critical time for the Federal Government, which relies heavily on higher crude output to boost oil revenues and support implementation of the 2026 budget.
The Erha field, located in Oil Mining Lease (OML) 133 about 100 kilometres offshore in the western Niger Delta, is one of Nigeria's largest deepwater producing assets with a production capacity estimated at around 200,000 bpd. The force majeure was declared due to unexpected equipment damage at the floating buoy supporting export operations at the Erha Floating Production, Storage and Offloading (FPSO) facility on July 8.
The damage has effectively halted export operations until repairs are completed, leaving Nigeria's recent production gains at risk. Analysts warn that an extended disruption could offset some of those gains and undermine Nigeria's ability to sustain higher export volumes, which have created an opportunity to improve fiscal revenues and external reserves.