Esso Exploration and Production Nigeria (Offshore East) Limited, an affiliate of ExxonMobil, has commenced on-block activities for the $1bn Usan Infill Project in Oil Mining Lease 138, a move expected to increase Nigeria’s crude oil production by up to 40,000 barrels per day.
The company announced the development on Wednesday in Abuja during the ongoing NOG Energy Week, describing the project as a major milestone in the continued development of the Usan deepwater field that will help sustain and boost output from the asset.
ExxonMobil said the Usan Infill Project is part of the broader Usan Field Development Plan and follows the acquisition and processing of high-quality seismic data in 2024, which identified new investment opportunities across the field.
The company said first oil from the project is expected within 18 months, describing the Usan Infill Project as a short-cycle investment that will significantly boost production from the Usan Floating Production Storage and Offloading facility.
Commenting on the development, ExxonMobil affiliates in Nigeria’s Chairman and Managing Director, Jagir Baxi, said the project underscores the company’s long-term commitment to Nigeria’s offshore oil and gas industry.
“The start of the Usan Infill Project reflects ExxonMobil’s continued focus on developing our deepwater portfolio in Nigeria. By applying advanced technology and leveraging our proven execution capabilities, we aim to safely and efficiently increase production and deliver value for our stakeholders while supporting Nigeria’s economic development,” Baxi said.
He added that the project reflects ExxonMobil’s confidence in Nigeria’s deepwater resource potential and underscores its commitment to responsible resource development.
Baxi also commended the Federal Government’s efforts to improve the investment climate for deepwater oil and gas operations, noting that the reforms have helped bolster investor confidence in the sector.
Speaking at the signing ceremony, the Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission, Oritsemeyiwa Eyesan, described the investment as a significant milestone for Nigeria’s deepwater oil industry, saying it aligns with the commission’s goal of revitalising activities across the country’s offshore assets.
“One billion dollars invested to unlock 40,000 barrels of oil. This initiative carries particular importance as it aligns with the commission’s objective to revitalise activity within Nigeria’s deepwater assets,” Eyesan said.
She noted that the project marks Esso Exploration and Production Nigeria (Offshore East) Limited’s return to drilling in Nigeria’s deepwater acreage after a decade.
“With Esso’s last drilling operation dating back to 2016, the resumption of drilling signals renewed potential and value in our deepwater acreage. The government has given us renewed hope, and Esso has latched on to that,” she added.
According to Oritsemeyiwa Eyesan, the Usan Infill Project exemplifies the kind of targeted investment required to accelerate oil production growth and reinforce Nigeria’s position as a leading destination for deepwater exploration.
“The Usan Infill Project exemplifies targeted near-term investment designed to accelerate production growth and reinforce Nigeria’s status as a leading destination for deepwater exploration. As we advance new developments, it is imperative that we equally prioritise maximising the efficiency of existing assets,” she noted.
She reaffirmed the commission’s commitment to supporting initiatives that attract investment, increase production, strengthen asset integrity and ensure the long-term sustainability of Nigeria’s upstream petroleum sector.
Esso Exploration and Production Nigeria (Offshore East) Limited is the operator of OML 138 under a production sharing contract with NNPC Limited. Its co-venture partners in the block are Chevron, TotalEnergies, and Nexen, a wholly owned subsidiary of CNOOC.
