ExxonMobil produces around 750,000 bbl/d of Oil in Nigeria. The company plans to invest $11 billion in the country's oil sector through 2011, with the hope of increasing production to 1.2 million bbl/d.

 

The majority of the increase will occur at the 150,000-bbl/d Erha development, which is located on Block OPL 209. First production is expected in March 2006, with output increasing to 200,000 bbl/d by the end of the year. Oil from Erha will be stored in a FPSO, with a capacity of 2.2 million barrels oil. Very Large Crude Carriers (VLCC), capable of holding up to 300,000 deadweight tons will be used for exporting the oil from the terminal. ExxonMobil also operates the Yoho field, with current full-field output of around 150,000 bbl/d.

 

Yoho contains around 400 million barrels of oil reserves. Yoho will be re-injected with associated Natural Gas to maintain field pressures and to eliminate natural gas flaring. The $1.2 billion field is located in the shallow waters of Block OML 104. ExxonMobil's Bosi, and Eti/Asasa fields with capacities of 120,000 bbl/d, and 25,000 bbl/d, respectively, are scheduled to come online between 2006 and 2007.

Total, Chevron, Agip, and ConocoPhillips are also involved in the Nigerian oil sector. Output at Total's Amenam field reached 120,000 bbl/d in January 2005. The Amenam field contains reserves of around one billion barrels of oil equivalent. Total's Akpo field is expected to come online in 2008, with estimated output capacity of 225,000 bbl/d. In 2004, Chevron produced an average of 366,000 bbl/d of oil, while Agip produced 255,000 bbl/d of oil.

In past years, the amount of oil that Nigeria produced has led to disputes with the Organization of Petroleum Exporting Countries (OPEC), as Nigeria frequently exceeded its production quotas. The multinationals see Nigeria's OPEC production quota as a major hindrance to increased production at several deepwater fields. Currently, Nigeria’s OPEC quota for crude production is 2.3 million bbl/d. In January 2006, Nigerian Minister of State for Petroleum, Edmund Daukoru, became the new OPEC president. Industry analysts have indicated that he will be faced with the double challenge of guaranteeing cohesion among OPEC members, while allowing Nigeria to increase its oil production.