Esso Exploration & Production Nigeria Limited, an ExxonMobil affiliate, has declared force majeure on crude exports from its Erha deepwater field, putting about 200,000 barrels a day of Nigerian oil production at risk at a critical moment for the country’s 2026 budget.

The Erha field, on Oil Mining Lease 133 roughly 100 kilometres offshore in the western Niger Delta, is one of Nigeria’s largest and most strategic deepwater assets. A company spokesperson said the force majeure was declared after unexpected equipment damage to the floating buoy supporting export operations at the Erha FPSO on July 8, adding that the company was actively working to restore operations and did not wish to speculate on a recovery timeline.

The disruption threatens to undercut recent gains in Nigerian output achieved after years of losses from oil theft, pipeline vandalism and underinvestment, and comes as the Federal Government is counting on higher crude production to boost revenue, strengthen foreign exchange earnings and fund the 2026 budget. Analysts warned that an extended outage at Erha could weaken investor confidence in the upstream sector and add further strain to government finances, which remain heavily dependent on oil receipts.

Source: thesun.ng