Nigeria’s oil revenue, output at risk as ExxonMobil declares force majeure
Nigeria’s drive to achieve its 2026 oil production and revenue targets has suffered a fresh setback following the declaration of force majeure by Esso Exploration & Production Nigeria Limited (EEPNL), an affiliate of ExxonMobil, on crude exports from its Erha deepwater field. The development threatens production of about 200,000 barrels of oil per day.
The disruption comes at a critical time for the Federal Government, which is banking on higher crude oil production to boost revenue, strengthen foreign exchange earnings and fund key provisions of the 2026 budget.
The Erha field, located on Oil Mining Lease (OML) 133, about 100 kilometres offshore in the western Niger Delta, is one of Nigeria’s largest and most strategic deepwater assets. With a production capacity of about 200,000 barrels per day, the field is a major contributor to the country’s daily crude oil output and export earnings.
Any prolonged disruption to operations at the field is expected to further reduce Nigeria’s overall crude oil production, potentially widening the gap between actual output and the government’s production target. Lower production would also translate into reduced crude exports, weaker foreign exchange inflows, lower government revenue and increased pressure on the implementation of the 2026 budget.
In response an EEPNL spokesperson confirmed that the company declared force majeure following unexpected damage to the floating buoy supporting crude export operations at the Erha Floating Production, Storage and Offloading (FPSO) facility.
“The Force Majeure was declared due to unexpected equipment damage at the floating buoy supporting export operations at the Erha FPSO on July 8, 2026.
“EEPNL is actively working to restore export operations. Relevant stakeholders have been notified, and regular updates are being provided.
“EEPNL does not wish to speculate on the recovery timeline,” the spokesperson said.
The declaration comes as Nigeria has been making steady progress in raising crude oil production after years of losses caused by oil theft, pipeline vandalism, and underinvestment.
Analysts warned that any extended outage at Erha could erode those gains, weaken investor confidence in the upstream sector, and further constrain government finances at a time when public spending is heavily dependent on oil receipts.
