The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has hailed ExxonMobil’s $1bn investment in the Usan Infill Project, located in Oil Mining Lease (OML) 138, describing it as a significant boost for Nigeria’s deepwater oil sector and crude production drive.
The investment, announced on Wednesday at the 25th Nigeria Oil and Gas Energy Week Conference and Exhibition in Abuja, is expected to increase output from the Usan field by approximately 40,000 barrels of crude oil per day.
Speaking after the announcement by the Managing Director of ExxonMobil affiliates in Nigeria, Jagir Baxi, the Commission Chief Executive of the NUPRC, Oritsemyiwa Eyesan, described the project as a major milestone, noting that it marks ExxonMobil’s return to drilling operations in Nigeria after nearly a decade.
According to a statement issued by the commission’s Head of Media and Corporate Communications, Eniola Akinkuotu, Eyesan said the investment reflects growing investor confidence in Nigeria’s upstream petroleum sector and the reforms introduced through the Petroleum Industry Act (PIA).
She noted that ExxonMobil’s affiliate, Esso Exploration and Production Nigeria, had not carried out any drilling activities since 2016, making the resumption of operations a strong signal of renewed interest in Nigeria’s deepwater assets.
“The Nigerian Upstream Petroleum Regulatory Commission commends ExxonMobil and its partners for committing $1bn to the Usan Infill Project in OML 138,” the statement read.
“The investment, announced by ExxonMobil’s Managing Director in Nigeria, Jagir Baxi, is expected to add 40,000 barrels of crude oil per day. With Esso’s last drilling campaign dating back to 2016, the resumption of drilling highlights the renewed value and potential of Nigeria’s deepwater acreage.”
Eyesan reaffirmed the commission’s commitment to advancing deepwater developments, stressing that such investments are critical to increasing crude oil production, growing reserves, sustaining government revenues and strengthening investor confidence.
She added that the NUPRC would continue to support projects capable of unlocking Nigeria’s offshore hydrocarbon resources, while creating jobs, boosting local content and enhancing government earnings as the country seeks to maximise the value of its energy resources.
Earlier, Baxi commended the NUPRC and other government agencies for their support in facilitating the project. Esso Exploration and Production Nigeria, an ExxonMobil affiliate, operates OML 138 under a Production Sharing Contract with NNPC Limited.
Other partners in the block include Chevron, TotalEnergies and Nexen, a wholly owned subsidiary of CNOOC.
Designed as a short-cycle investment, the Usan Infill Project is expected to sustain and increase production from the Usan field, with first oil targeted within 18 months following seismic studies that identified the development opportunity.
