Nigeria’s daily crude oil output faces risk of decline following a declaration of force majeure by Esso Exploration & Production Nigeria Limited, an affiliate of ExxonMobil, on exports from its Erha deepwater field.
Esso Exploration & Production Nigeria Limited (EEPNL) declared the force majeure due to unexpected damage to the floating buoy that supports export operations at the Erha FPSO facility.
According to reports, an EEPNL spokesperson confirmed that the damage occurred on July 8, 2026.
The disruption puts roughly 200,000 barrels per day (bpd) of capacity at risk, presenting a significant hurdle to Nigeria’s 2026 oil output targets and government revenue projections.
The Erha field – located on Oil Mining Lease (OML) 133, approximately 100 km offshore – is one of Nigeria’s largest deepwater assets, with a production capacity of about 200,000 bpd.
This represents a significant portion of the country’s total output, which rose to approximately 1.74 million barrels per day (crude oil and condensates) in June 2026.
The damage has temporarily prevented safe crude oil transfers from the FPSO to shuttle tankers, forcing the operator to suspend export liftings while technical teams carry out repair work.
The supply interruption comes at a critical juncture for Nigeria’s energy sector. The country has been steadily ramping up aggregate output toward its 2026 production targets, bolstered by aggressive anti-crude theft surveillance along onshore pipeline corridors.
The sudden disruption at a major deepwater hub highlights the operational vulnerabilities inherent in offshore infrastructure, where repairs often require specialised marine support and extended timelines.
Industry experts note that a prolonged disruption at the Erha field is expected to reduce Nigeria’s overall crude production, potentially widening the gap between actual output and the government’s 2026 targets.
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Financially, the prolonged outage threatens to compress federal revenues and compound ongoing foreign exchange liquidity pressures. Crude exports remain Nigeria’s primary source of foreign currency earnings, and a sustained curtailment of 200,000 bpd risks widening the national budget deficit if repair schedules extend into next month.
EEPNL stated that engineers are working to restore the export loading capability safely and swiftly, though no concrete timeline for the resumption of normal operations has been provided.
Pinnacle Daily reports that while highlighting the financial impact of the company’s operations at the Erha oil field, Chairman/Managing Director of ExxonMobil Affiliates in Nigeria, Jagir Baxi, disclosed in April that the Deepwater project has generated over $70 billion in value.
Baxi, who led a delegation to pay a courtesy visit to the Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, at the Ministry of Petroleum Resources, Abuja on April 16, said this includes about $23 billion remitted to the Federal Government from more than 800 million barrels of crude oil produced over the past 20 years.
Victor Ezeja is a Nigerian journalist skilled in producing insightful news analyses, feature stories, and interviews that simplify complex issues and drive informed public discourse. His work combines rigorous research, balanced reporting, and compelling storytelling to highlight developments shaping industries and society. Victor, who holds a Master's Degree in Mass Communication, specializes in energy, aviation, business, and economic reporting. He can be reached via @VICTOREZEJA on X