Esso Exploration and Production Nigeria Limited, an affiliate of ExxonMobil, broke ground Tuesday on a permanent Shore Base facility at the Lagos Deep Offshore Logistics Base, becoming the first international oil company to fully fund the construction of such infrastructure within Nigeria’s premier deepwater logistics hub.
The ceremony at LADOL’s Apapa Port complex drew senior officials from the Nigerian Content Development and Monitoring Board and the National Upstream Petroleum Investment Management Services, signalling the Nigerian government’s backing for a project that industry observers say could reshape how foreign majors approach onshore logistics investment in the country.
Under the arrangement, LADOL will build the Shore Base facility using full funding from EEPNL through a long-term Logistics Base Contract.
Upon completion, the infrastructure will become part of LADOL’s wholly owned permanent asset base, while simultaneously serving as EEPNL’s primary logistics hub supporting its Erha floating production, storage and offloading vessel, one of Nigeria’s flagship deepwater assets operating in water depths exceeding 1,000 meters.
The financing structure is notable. Rather than constructing and retaining proprietary logistics infrastructure, a model common among major operators, EEPNL is effectively bankrolling a third-party asset it will lease back, a long-term arrangement that supports indigenous asset ownership while reducing the capital burden on Nigeria’s logistics service sector.
“By investing in a permanent Shore Base facility under a Logistics Base Contract at LADOL, we are strengthening the operational foundation that supports Erha production while contributing meaningfully to Nigeria’s local content aspirations,” said Jagir Baxi, chairman and managing director of ExxonMobil’s Nigerian affiliates.
The completed facility will include a modern administrative complex, covered and open warehousing, chemical storage, laydown areas and pipe sheds, infrastructure designed to tighten supply chain turnaround times for deepwater operations that are acutely sensitive to logistical delays.
Baxi said the shore base’s proximity to offshore assets would yield industry-wide dividends beyond EEPNL’s own operations.
“This investment strengthens LADOL’s infrastructure base and is expected to attract suppliers, service providers, and investors to expand their in-country presence,” he said, adding that shared Shore Base resources could drive down costs across Nigeria’s deepwater sector more broadly.
Construction will be carried out predominantly by Nigerian firms, with local professionals leading all major project phases, from engineering and design through to commissioning.
The development is projected to generate direct employment during the construction phase as well as sustained jobs over the facility’s operational lifecycle, feeding into a broader government agenda to deepen indigenous participation in the upstream oil and gas value chain.
Nigeria’s deepwater sector, which pumps the country’s highest-quality crude grades including Erha and Agbami blends, has faced persistent operational headwinds in recent years, including aging infrastructure, security disruptions and a capital retreat by international majors following the global energy transition pivot.
Shell completed its withdrawal from onshore acreages in 2024, while TotalEnergies and others have rebalanced portfolios away from Nigeria’s upstream in favour of lower-carbon alternatives.
Against that backdrop, EEPNL’s deepwater commitment carries strategic weight. ExxonMobil has maintained a longer runway in Nigeria than several of its peers, and Tuesday’s ceremony reinforces a posture of sustained engagement in the country’s offshore basin, where resource potential remains significant.
LADOL, which was established to provide integrated deepwater logistics and fabrication services, has anchored Nigeria’s ambition to localize more of the value chain associated with offshore oil production. The Shore Base project adds a permanent infrastructure layer to that proposition — and sets a precedent that other international operators may face pressure to follow.
Completion timelines for the facility were not disclosed at the groundbreaking ceremony.
