ExxonMobil and its partners have committed $1 billion to the Usan Infill Project, a major offshore investment expected to increase Nigeria's crude oil production by about 40,000 barrels per day.
The investment was announced on Wednesday, July 8, 2026, at the 25th NOG Energy Week Conference and Exhibition in Abuja by Jagir Baxi, Managing Director of ExxonMobil affiliates in Nigeria.
The Usan oil field, located in OML 138, is operated by Esso Exploration and Production Nigeria under a Production Sharing Contract with NNPC Limited, making it one of Nigeria's key deep-water producing assets.
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) described the investment as another strong signal of growing confidence in Nigeria's upstream petroleum sector. Its Chief Executive, Oritsemyiwa Eyesan, said the project is especially significant because it marks ExxonMobil's return to drilling in Nigeria after Esso Exploration and Production Nigeria suspended drilling operations in 2016.
Eyesan said Esso operates OML 138 on behalf of a consortium that includes Chevron, TotalEnergies and Nexen, a subsidiary of China's CNOOC. She added that seismic studies uncovered additional development opportunities in the Usan field, with first oil from the infill project expected within about 18 months.
The conference also saw the NUPRC present Petroleum Prospecting Licences (PPLs) to successful participants in the 2022/2023 Mini Bid Round and the 2024 Licensing Round. Broron Energy Limited (PPL 2009), Petroli Energy Marketing and Supply Limited (PPL 269), Sahara Deepwater Resources Limited (PPLs 270 and 271), and Tulcan Energy E&P Co (PPL 2008) were among the recipients.
Overall, 12 companies received 19 Petroleum Prospecting Licences covering deep offshore, shallow-water and continental shelf acreages, reflecting the government's push to expand exploration across Nigeria's upstream petroleum industry.
The latest commitment builds on ExxonMobil's long-term offshore strategy announced in September 2025, when the company unveiled plans to invest up to $10 billion in developments centred on the proposed Owo Project, a major subsea tie-back initiative.
At the time, ExxonMobil's Chairman and Managing Director in Nigeria, Shane Harris, reaffirmed the company's long-term commitment after more than 70 years of operations in the country, saying the company was shifting its investment focus to deep-water projects following the divestment of its onshore assets.
ExxonMobil also disclosed plans to spend about $1 billion annually on maintenance and invest an additional $1.5 billion to increase production by roughly 50,000 barrels per day in the coming years, reinforcing Nigeria's position as a leading destination for deep-water energy investment.
No comments:
Post a Comment