“DEEPWATER IS BACK”: EXXONMOBIL PUMPS $1BN INTO USAN INFILL, SET TO ADD 40,000 BPD TO NIGERIA’S OUTPUT
GREATRIBUNETVNEWS–AFTER 9 years off the drill, ExxonMobil is returning to Nigeria’s deepwater with a $1 billion bet.
The Nigerian Upstream Petroleum Regulatory Commission says the Usan Infill Project will lift production, reserves and investor confidence as the country pushes to hit national output targets.
NUPRC: “Resumption of drilling signals renewed potential and value in our deep water acreage”
Bottom Line:
$1 billion. 40,000 bpd. First Esso drilling in 9 years. NUPRC says the Usan Infill is proof Nigeria’s deepwater still has value — and investors are watching.
The Key Issues, In Full Quotations:
1. NUPRC’s Verdict on the $1bn Investment
“The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has said that the ExxonMobil’s $1 billion commitment to the Usan Infill Project in OML 138 is good for Nigeria’s oil production and investor confidence.”
2. Announcement at NOG 2026
“Commission Chief Executive, Mrs. Oritsemyiwa Eyesan, disclosed this on Wednesday, at the 25th NOG Energy Week Conference and Exhibition in Abuja.”
3. The Project Scope and Output Boost
“ExxonMobil Nigeria MD, Jagir Baxi, had announced the investment, which is expected to add 40,000 barrels per day.”
4. Significance: First Drilling Since 2016
“Reacting, Eyesan noted the development was significant as Esso Exploration and Production Nigeria, an ExxonMobil affiliate, had not drilled since 2016.
“With Esso’s last drilling operation dating back to 2016, the resumption of drilling signals renewed potential and value in our deep water acreage,” she said.”
5. NUPRC’s Deepwater Push
“She expressed NUPRC’s commitment to advancing Nigeria’s portfolio of deep water projects, adding that such developments are essential to achieving national production targets, increasing reserves, sustaining government revenues, and bolstering investor confidence.”
6. ExxonMobil’s Appreciation
“Speaking, the ExxonMobil Nigeria boss, Baxir, commended the NUPRC and other government agencies for their role in facilitating the project.”
7. OML 138 Structure
“Esso Exploration and Production is the operator of OML 138, which contains the Usan field. The block is operated under a Production Sharing Contract with NNPC Limited. Co-venture partners in OML 138 include Chevron, TotalEnergies, and Nexen, a wholly owned subsidiary of CNOOC.”
Meanwhile, the NUPRC on Wednesday presented Petroleum Prospecting Licences (PPLs) arising from the successful conclusion of the 2022/2023 Mini Bid Round and the Nigeria 2024 Licensing Round.
Some of the companies that were presented with their awards at the venue include: Broron Energy Limited (PPL 2009), Petroli Energy Marketing and Supply Limited (PPL 269), Sahara Deepwater Resources Limited (PPL 270 and PPL 271) and Tulcan Energy E&P Co (PPL 2008).
Companies whose representatives were not present will have their execution ceremonies scheduled shortly at mutually convenient dates.
The exercise covers 12 successful awardees across 19 Petroleum Prospecting Licences, comprising a balanced portfolio of deep offshore, shallow water and continental shelf acreages, reflecting the diversity of opportunities offered through the licensing rounds.
According to the NUPRC, the awards represent another significant milestone in Nigeria’s continuing efforts to deepen investment in the upstream petroleum sector, accelerate exploration activities, expand the nation’s hydrocarbon reserves, and create long-term value for the Nigerian economy.
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