Nigeria’s deepwater oil sector is experiencing a resurgence as international oil majors, including Shell, ExxonMobil, Eni, and TotalEnergies, resume investment following over a decade of stagnation. The revival is driven by federal fiscal reforms, including a newly introduced production-linked tax credit of $11.50 per barrel for new deepwater projects, aimed at boosting production to reach government targets of three million barrels per day by 2030.

Recent key developments include ExxonMobil’s $1 billion sanction for the Usan Infill Project and Shell’s progress on the Bonga North field. Wood Mackenzie analysts suggest that a slate of upcoming projects—such as Bonga Southwest-Aparo, Owowo, and Zabazaba—could collectively add 700,000 barrels of oil equivalent and 950 million cubic feet of gas daily. While the outlook is positive, analysts warn that execution risks, infrastructure constraints, and the need for sustained regulatory efficiency remain critical factors in ensuring this recovery is durable.